Yes, if you’re a dependent student and your parent that fills out the FAFSA meets the Auto-Zero qualification, the FAFSA just stops and doesn’t move on to assets or student info. FAFSA tries to make things simple and it’s a rare situation where the student would be making more than the parent. Now, some states still require the other info for state and institutional grants though.
The two year lookback is because they open up FAFSA in October the year prior to the school year that you would be attending and that FAFSA asks for income from the year before that. So, the FAFSA you fill out this October for the 2022-2023 school year will ask for info from 2020.