This is a valid concern with a lot of manufacturers. My gut says that Framework actually does what it says, but here is a discussion about it:

https://community.frame.work/t/how-do-the-camera-and-microphone-switches-work/4271

As far as I can tell each switch is a U channel with a light emitter on one side, and a detector on the other. The part you move on the bezel just breaks the light beam. This creates a electronic on/off hardware switch.

Using an actual physical switch would tend to be a source of an intermittent connection over time. Hence the use of optical technology. Same thought process for the screen open switch being a Hall Effect sensor, which can work through a cover.

Both of these switches are optical switches where a vane will block the light from one side to a phototransistor on the other side. The photo transistor will then cut power to the camera circuit, or switch the mic data output from the mic to a dummy output that generates silence.

The webcam light is also hardware for once. A lot of laptops do it with software, where people complain the camera turning on without the light being on. Framework shouldn't have that problem

The classic Technology Connections video: https://youtube.com/watch?v=m0mMF7GaIR0