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It does, and I did try one. I've only used the built in panorama function a few times. The exposures were so quick that the resulting panorama was pretty badly underexposed. It certainly didn't seem to use an exposure that was anything near what I had been using to capture images while I was shooting.
Yeah, it does. But the major disadvantages to using this process include: only recording the image as a JPG, and only having the one chance (in camera) to merge the images... which does work well but also does make mistakes.
I've found PS and third-party panorama tools so much more accurate, easier to use, and provide the ability to re-try with a slightly different approach if the merge didn't work perfectly the first time. AND... you can shoot in RAW first, make most adjustments, then output the files, then do the merge.
So it's a nice in-camera feature if you want to use it like an iPhone, just to grab a quick exposure to show someone. But it's not something you'd want to use for a more serious project.