Ah, I was just being daft then. Googled how to replace a pane in a sash window and it makes more sense. The glass doesn't slide into a precise groove (you'd never get it in/out!) but from the outside looking in, the glazing bar/stile/rail is routed or similar to have a 'stepped' profile. So the glass butts against this with a small overlap, then you apply putty on the outside to lock it in place.
Have I got that right?
Have I got that right?