Non turn combat mode (Narrative)

How does this system of combat works when we toggle off the turned combat system ? I know the turn combat is the main system and it’s very good, but I am curious about the narrative combat, is it optimized? Franz do not seems to ask for rolls to dodge, attack, to rolls for ennemies etc. Sometimes Franz always wait for the player to takes initiative, where enemies and allies are just waiting (but I also know there will be an update about the autonomous actions of the npcs). Will it changes anything? How does the narrative combat works?