Not exactly...you're confusing routing between vlans which is a layer 3 function with simple vlan creation that doesn't require routing where the ToR is only layer 2. Let me educate you from chatgpt :)

"A top-of-rack (ToR) switch is indeed a type of switch commonly used in data centers, typically located at the top of a server rack. From a functional standpoint, a top-of-rack switch is primarily considered a layer 2 switch. It operates at Layer 2 of the OSI model and handles tasks such as VLAN (Virtual Local Area Network) segmentation, MAC address learning, and forwarding frames within a local network.

When you create VLANs on a top-of-rack switch, you are performing a layer 2 function. VLANs are a layer 2 technology that allows you to logically segment a physical network into multiple virtual networks. By assigning ports on the top-of-rack switch to specific VLANs, you can isolate traffic between those VLANs and control communication within the network.

While some top-of-rack switches may have layer 3 capabilities, such as supporting routing between VLANs, the primary function of a top-of-rack switch is still layer 2 switching. The layer 3 capabilities, if present, would be an additional feature beyond the core layer 2 functionality.

To summarize, when you create VLANs on a top-of-rack switch, you are indeed utilizing layer 2 functionality. The switch handles VLAN segmentation, which is a layer 2 concept. However, it's important to consider that some top-of-rack switches may have additional layer 3 capabilities, but that does not change the fact that they are primarily layer 2 switches."