Yes but it has limitations/risks that could be a deal killer depending on your use case.
When a file changes externally, Nextcloud doesn't know about the the changes until it looks at the file. It only looks when a user access that location within Nextcloud or during a automatic file scan.
The only time I have had issues with it is using a Nextcloud desktop client, as files are cached locally on the desktop and the client doesn't live query the server when you view the files locally.
Changes made externally of Nextcloud won't get updated on desktop clients until Nextcloud looks at the file an realizes a change happened.
This can be very annoying but also dangerous as you are at risk of editing an outdated file.
For example if you edit a file via SMB and then edit the same file again on a desktop clients. The desktop clients won't have the new file with the B changes. So you risk overwriteing the files with an old version.