Some WAC creatures are scaled and some are not. For instance, Fear (5), Crocodile (4), Gorilla (6), White Mantis (5) are unscaled. They remain at those levels during the entire game and we can meet them at level one. Other creatures such as Gnolls (+1), Brobdingnagian Giant (+4), Gargoyls (+2), Pixies (-1) are scaled. They stay slightly above or below the level of our character as we level up.
WAC does feel unscaled. I continually get my butt handed to me by higher level enemies. Some of that is because some enemies really are unscaled, and some of that is because Waalx uses scaling to keep those enemies at a higher level.
I'd say WAC is a lot like Oscuro's mod, in this regard. Both WAC and OOO use scaling. But they use it in a more controlled fashion than the vanilla game. And both throw in some hand-placed, unscaled enemies here and there to keep us on our toes.