Hi Marky, yes any jpgs within your xar/web file will be published as both jpg and webp. Further if you have retina selected there will be four images uploaded:
image.jpg
image@2x.jpg
image.webp
image@2x.webp
The server will download the most appropriate dependant on your devise.
gif's and png's are also published as webp files as well.
Due to the substantial file saving it's worth re-publishing your older sites too.
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