It does not by default. Tried it with 2 different digital games in the cart: neither of them got the discount. If, as somebody said above, a rep overrode it, I'd expect that to be YMMV.
Unrelated, but for anybody wondering: doesn't look like it works on accessories. Tried with the Series X expansion card, no discount.
Thanks, yeah i figured online it wouldn't work, but maybe some wiggle room in store. I'll see if I can try before it expires.