Am I completely wrong????
Not completely.
A bit of science.
The aircon is a simple fridge. It just cools the air.
Air will absorb moisture. The warmer it is, the more moisture it can hold, which is why summers are often very humid. Conversely, when the air cools, it cannot hold as much moisture, so some condenses out. Just like when you take the milk out of the fridge, if you leave it out for a few minutes, it gathers moisture on its surface as the touching air cools and cannot hold the moisture. The same thing is happening when our windows mist up. The window being cold, cools the touching air, so moisture collects on the glass. We blow warmer air onto it to absorb the moisture, often resulting in a car warmer than we would like in order to be able to see out.
The aircon cools the incoming air. Moisture condenses out, and as the droplets join together it drains out under the car, which is why aircon cars leave puddles. Therefore the incoming air is dryer, so will absorb moisture inside the car more readily, so misting up is cleared more quickly, or is prevented. With the aircon running, the occupants will lose more moisture than otherwise, so drinking plenty of water is necessary to avoid dehydration. Wearers of "soft" contact lenses may find them drying out, so should wear glasses instead.
The air will be cooled down to a minimum temperature. If the incoming air is already at or below the set minimum, the aircon will not operate.
Although teh incoming air is cooled, you can choose to reheat it, so setting the desired temperature inside the car. A great advantage in wet weather is no condensation without overheating the interior.
Hopefully explained, ask again if more required.