A diagram might be helpful.You're kind of stating that both occur: pull air in from the outside AND recirculate the interior air?? Modern window units do not pull air from the outside, except as noted that a few might have a lever to open up to outside air.
EDIT: o.k., maybe your wording is just a bit confusing. They use outside air on the condenser, but it is not "pulled in" to the inside room.
https://hvac-boss.com/cooling/does-a-window-air-conditioner-pull-air-from-outside/
They typically have two fans run off a common shaft. The outdoor fan circulates air across the condenser. The indoor fan pulls air from the room across the cooling coil. Indoor and outdoor air never mix - the unit is sealed on the inside.