HP also uses this method. I have the Spectre x360 13 tiger lake i7, and I also do note this cycling behavior, but it is at higher power limits and temperatures. In performance mode, the PL1 when temperatures are low is 29.5W, which is a bit higher than the XPS. When initiating a stress test, the temperatures skyrocket to 100, and sit there, while the CPU continues to draw 35-40W. Then, the turbo time limit is up, and it drops to 29.5W in 15 seconds after sitting at 100 degrees. At 29.5W, the temperatures are at around 85-90 degrees, and it sits there for a little bit, and then starts dropping, .5W every second, until it reaches 20W. At 20W, temperatures are around 70 degrees, and then after around 10 seconds or so at 20W, it starts increasing, once again at .5W per second, until reaching 29.5W. Then, the temperatures are a little lower, but still over the 80 degree mark. It sits at 19.5 W for 15 seconds and then drops back down to 20W. During this time, the fans are running at max speed and do not fluctuate. In balanced mode, the PL1 is 18W and drops to 14W, with temperatures in the 60 degree range.
NOTE: When gaming, for my Spectre, the power limits do NOT cycle. It sits at 29.5W constantly (temperatures around 80) and does not decrease to 20W. The GPU clock is at max frequency all the time (1300 MHz) and CPU is at 4 GHz. The frame rates do not cycle, and stay consistent.
Honestly, I see HP's approach to dynamic tuning as much better than Dell's. Not only did they use a triple heat pipe design (two leading to fans and one for passive cooling), compared to one for the XPS, but they also kept power limits higher and when gaming, the power limits do NOT cycle, which is good for gamers.