[RedDevil]

The engine will cut the fuel (DFCO) and either keep the valves closed all the time or keep them open all the time (the opinion on that is mixed) to lower friction.

You don't need to turn off the engine; in fact you shouldn't.
The CVT will drag with the engine off too. And there is no bump start, you'd need to key on again, it needs to be in Neutral for that.
(tip- you can start the car in Neutral. So you can key off at the lights if AutoStop does not last long enough. Don't forget to switch back to D once you restart to get going!)

You could put it in neutral and do the engine off glide thing, but it coasts quite well in DFCO neutralizing regen with light accelerator pedal pressure.
It definitely uses less fuel either at constant speed or P(ulse)&G(lide)-ing with DFCO compared to P&Gíng in neutral with engine on; not surprisingly as even at a constant throttle at 38 mph/1100 RPM it uses just about twice as much fuel per time than when idling...!

I've given up on P&G, the Insight does as well without.