Does every electronic product with embedded firmware automatically fall within the CRA?
No.
The product must also have a direct or indirect logical or physical data connection to a device or network in its intended purpose or reasonably foreseeable use. The Commission FAQ gives examples such as offline dishwashers, calculators, toys, coffee machines, and electric toothbrushes that are outside scope despite embedded firmware.
Article 2(1) requires the direct or indirect logical or physical data-connection element in addition to digital content.
FAQ 1.3 gives examples of embedded-firmware products that remain outside scope where they do not exchange digital data.