The "B" mode on Toyota CVTs is most definitely an engine brake, though more aggressive than most people would do with a manual gearbox - the engine revs go up somewhere near the red line on a steep hill!!
In normal mode, the electric regeneration when you lift off the accelerator slows the car about the same as engine braking at about 3000rpm I'd guess from how mine behaves, which is more slowing without the brakes than most drivers would do. I've only used "B" mode on properly steep long downhill sections such as when coming down Sutton Bank and some of the roads in the Scottish mountains, its not needed to control speed on more normal hills.
In town, if you drive gently, it only uses the friction brakes to stop for the last few mph. Gently pressing the brake pedal increases the regeneration level first (if there is capacity left to charge in the battery) before applying the brakes as you press the pedal harder.
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