Most of the information below was direct from APR... and yes, when you let go of the throttle during launch control, AMAX is cut off.
AMAX (acceleration maximum) is present from the factory and is specific to the DSG transmissions. AMAX becomes active only during launch control on these vehicles (because launch control is very controlled, no pun intended). AMAX utilizes both clutches simultaneously and slips between the gears with VERY LITTLE room for error.
A normal DSG shift (AMAX not active) de-rates the engine by telling the ECU to pull timing. It does this for two reasons during a shift, it's preventing the engine from free-revving and it is also lowering the applied torque to the clutches. This engine de-rate happens while the DSG transmission is opening one clutch and closing the other. Then, after this transition completes, the TCU immediately tells the ECU to bring back the power. This de-rate timing retard during a shift is what causes the DSG farts (depends on other driving variables as well).
When using AMAX (during launch control), the TCU tells the ECU to keep the power consistent the entire time, there is no de-rate requested at all. AMAX (TCU talking to the ECU) controls the engine RPM by having both clutches engaged together in the linear (slip) region while the DSG transmission transitions between the two. The benefit of this is that the engine makes full power the entire time and is transferring it through the drive train, to the ground, even during a shift. The downside is that it's extremely delicate. If the transition time is too fast during a shift, the clutches won't slip enough, will be working against each other and will rip themselves out of the transmission. If the transition time is too slow, the engine will free rev, hit the limiter and de-rate via the rev limiter with the power only coming back once a clutch completes a close.
Fun fact, there was actually an AMAX counter on some Audis (I'm not sure about Volkswagen) that would prevent AMAX from being used if the counter reached it's set limit. This is because you are actually wearing the DSG clutches A LOT more using AMAX shifting vs. standard shifting since both clutches remain engaged while the car slips between it's gears.
APR, in certain tunes, accounted for the factory AMAX and claimed to make it better with their power gains. I say claimed because I personally do not know if this is true and I don't want to state facts I'm unsure of.