Yes it does...Kaido has the hype of being a Yonko and never losing a 1 v 1. Nobody is denying that luffy is going to win, he is the MC so the plot demands it, but just like his fight against crocodile without the support of outside forces saving his life, he would be dead both times. Them the facts
Sanji and Zoro have
in universe absolute faith in him.
Current Luffy is matching hybrid Kaido.
"the plot demanded":
that Luffy not use FS against Kaido pre-Udon
that his scales had a magical property that only ryuo could overcome,
that Rayleigh didn't bother to teach Luffy barrier ryuo despite it barrier being portrayed as basic against the elephant and used by much weaker characters.
that Luffy runs around rather than rocketing up to the roof to fight with the scabbards,
and that Law decides to fuck around with the poneglyph as Kiku loses her arm and the scabbards "almost die"
that Luffy burn completely through his g4 stamina, despite Kaido showing fear from internal destruction red hawk.
that Luffy can only beat Kaido after his subordinates have finished their fights.
That last one is the key.