Testing Maximum Rows in Table Value Constructors

Solomon Rutzky dives into how big a table value constructor can be in terms of rows:

On 2019-05-08, a helpful individual, Michael B, commented on my answer saying that the 1000-row limit only existed when using a TVC as the VALUES clause of an INSERT statement. And, that there was no limit when using a TVC as a derived table.

Could this be true?

Solomon finds out. Click through and so can you.