Yes it is true. There's a big difference considering styles.
The LayoutInflater creates the views by calling their constructors. There it passes the context you passed to it. So if you use the application context instead of an activity context you might lack some information.
It's the same issue like using application context for creating views directly. Activities may define different styles and their contexts wrap these information.
Taking into consideration how you could get it, there's not a big difference. Internally LayoutInflater.cloneInContext(Context) is called to apply different context configurations.
Create a copy of the existing LayoutInflater object, with the copy pointing to a different Context than the original. This is used by ContextThemeWrapper to create a new LayoutInflater to go along with the new Context theme.
With the application context you don't get this.