Apple recently released a new support document with more details on the new all-weather display mode on the iPhone 14 Pro and iPhone 14 Pro Max.

It is worth noting that this document lists 8 situations where 24/7 displays can be temporarily turned off.
To save battery power, Apple says the screen will be completely dimmed under the following circumstances:
When the iPhone faces down When the iPhone is in a pocket or bag When the sleep mode is on When the low battery mode is on When the iPhone is connected to CarPlay using a continuous intercom camera, when the iPhone detects that you are leaving wearing the paired Apple Watch
According to Apple, the iPhone 14 Pro and iPhone 14 Pro Max can learn your "activity mode" and turn off and turn on the 24/7 display accordingly.
source / Weifeng.com