AYC doesn't reduce the power output, just where the power is being applied to. It is capable of doing (0% - 100%) to (100% - 0%) between the rear wheels and anything in between. This also goes for the VII only, since I am not that familiar with the pre VII models. They basically use it for the steering of the rear end until too much, when it works as the stabilizer.
What happens is that when you start increasing your steering angle, AYC start to send more power/torque to the outside read wheel. ACD at the same time gets more and more open, so the power goes wherever is easier to spin the tires (in this case the goal is outside rear again). In the most extreme case, you might have most of the power going to that outside wheel so you can do donuts

The more you turn, front end steers more with the turned wheels, while the rear end gets more out due to less traction at the outside rear corner.
Ones you oversteer the car a bit more than your stomach likes it, you start to counter steer and that stabilize the front end of the car with the wheels turned to the opposite direction. At the same time, AYC starts sending more power to the inside wheel, which allows your outside rear to bite back. The power to the inside wheel also starts to rotate the car into the opposite direction, so it helps to stop original rotation (or spin) and brings the car back under the control.
Hope this helps.
Fedja