There is a dramatic loss in useful image data (and thus IQ) by significantly underexposing at a lower ISO compared to correctly exposing using a higher ISO.
Nikon D850 pics of a color chart. All light coming from a strobe, output constant between the pics. f/11, 1/250th sec. The first pic taken at ISO 3200, the second at ISO 100. For the first image below I made no changes in post. For the second I increased exposure by 5 stops in LR. While they may look similar below, the actual files are radically different.
Sharing the RawDigger histograms of each pic. The area under the curves is the pixel level data for each pic. Gaps in the histograms represent absence of data for that EV value. It should be quite obvious that the files are not equal regarding the data they contain. The ISO 3200 file contains significantly more data than the ISO 100 file. The histograms reflect the data present in the RAW files, not JPEGs.
Again, the light is exactly the same between the two images. The only difference was the ISO at the time of capture.
[Edit: my initial image of the RawDigger histogram for the ISO 100 pic didn't have the same Y-axis scaling as the ISO 3200 pic. But the results are the same--significant gapping in the ISO 100 image that reflects absence of pixel data for those EV values. This means there are abrupt rather than smooth tonal transitions for many areas--especially in the shadows. Since the data do not exist, it is impossible to recover.]
Since the histogram is a graph of the EV value recorded by each pixel, where did all the pixels go in the ISO 100 image? The answer lies in the following graph. Massive numbers of pixels recorded identical EV values in the shadow areas (because the pic was effectively 5 stops underexposed at capture). Even good sensors struggle with maintaining even tonal transitions in the shadows. Somewhat analogous to "blown out" highlights which truly can't be recovered because there is no data there to recover.
Effects of different ISO values are *not* something that happens as part of RAW conversion, it is happening at the time of image capture. Pixels are reacting to the amount of light they receive and in an underexposed image (regardless of whether it is underexposed because of aperture, shutter speed, or ISO) you will lose smooth tonal transitions because the sensor can't adequately distinguish between true tonal variations that are present in the subject. One reason why people say to "expose to the right" at the time of capture--meaning increase exposure until you are just shy of blowing out important highlights and then decrease exposure as needed in post.