Looking at the code of BrightXDR, this is pretty much the same as BTT does. (Overlaying the screen with a HDR enabled view, which in return enables the HDR / 1600nits mode on the display)
BetterDisplay makes use of lower level functions in private frameworks as far as I know, but I currently don't want to get into this (also due to the risks involved in calling private functions in a scenario that can potentially harm the hardware)
(I use BetterDisplay myself and it's absolutely worth the money, they know what they are doing)
Ah but it seems like the required values have changed with a recent macOS version. To achieve a similar result to BetterDisplay, these values seem to work good nowadays: