Google’s John Mueller tells an individual that whenever Google performs any changes in their algorithms then there is no impact on direct traffic of the site, but yes it affects the organic traffic of your site.

Also Read:

https://technians.com/news/googles-search-spam-algorithm-update-on-june-23/

The direct traffic is the traffic when people are coming over your site via typing your site name or exract a site from bookmarks.Google analytics will also unable to identify the original source of the site in this case.

John Mueller says over Twitter:

Search algorithms can’t affect direct traffic — it sounds like either you’re not tracking direct traffic (and it’s more a total mix of traffic), or something unrelated also happened.

John explained that it might possible that something is wrong with site or the analytics configuration which brings the issue but it would not because of the algorithm update.

Search algorithms can't affect direct traffic — it sounds like either you're not tracking direct traffic (and it's more a total mix of traffic), or something unrelated also happened.

— ? John ? (@JohnMu) June 22, 2021