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That does appear to be true. 

Note that there is a Pulumi-wide transformations feature which can also be used, and it does support modifying resource options. 

You can think of the kubernetes specific one as transforming the kubernetes YAML, and the Pulumi one as transforming the Pulumi resource. 

<https://www.pulumi.com/docs/intro/concepts/resources/options/transformations/|https://www.pulumi.com/docs/intro/concepts/resources/options/transformations/>

Thanks. That makes sense. I can actually just do the transformation I want on the ConfigGroup resource itself instead of in transformations on the args. I did find that confusing though because its a use case pointed out in the docs in other languages:
<https://www.pulumi.com/registry/packages/kubernetes/api-docs/yaml/configgroup/#yaml-with-transformations>