To have any tearing at all at 500Hz, you'd need a framerate above 500FPS
And then you'd have visible tearing for less than 0.5ms
Your adaptive sync is still Vsync on, so zero tearing is possible
(Vsync off disables adaptive sync/Gsync/Freesync)
Vsync on, VRR (variable refresh rate, whatever brand name) on, FPS cap 2 under your refresh rate and you'll get that amazing experience you're after
It's possible to have tearing when the GPU FPS is below the monitor's refresh too, as all that matters is that they're not synced for a new frame to start being drawn halfway through a scan cycle. The exact amount of tearing and how visible it is depends on various factors though, including the monitor refresh, GPU FPS and game engine*. I know, because I've seen it myself: UT2004 on an FX5200 will produce this nicely as the card is so low performance it couldn't even hit 60FPS on a 60Hz CRT much of the time. It really looked a mess lol. Man, that takes me back 20 years... btw, I still have that card, a nice Asus AGP low profile one with VGA output only. Hasn't been used for years now.
As far as my VRR setup is concerned, I have it set to VSYNC on above the monitor's refresh rate. When I play CoD (online or single player) my ancient 2700K CPU can't hit 144Hz anyway, even at low res, so I'm always in the G-SYNC range**. It's absolute bliss I tell you. Having experienced it now, I can say that VRR is one of the best advancements in PC tech for years and significantly reduces the need to upgrade the graphics card for improved framerate. Good thing too at today's ridiculous prices.
*This applies whether the GPU rendering is above or below the monitor refresh rate. Agreed that with a 500Hz refresh rate it's likely impossible to ever see it and that's a Good Thing. I certainly noticed very little tearing when running the monitor at 144Hz and the GPU hitting 200-400 FPS VSYNC off in older games, so at 500Hz, I doubt anyone will ever see it, although it's still there.
**Sometimes it even drops below 48FPS, the bottom of the G-SYNC range for my monitor and looks bad, but don't tell anyone.