IIRC W2K didn't have one. Defragmentation can use different strategies which may impact the time it takes and additional perf gains if the right files are next to each other. The builtin defrag tool doesn't give any option. So "snake oil" I'm not so sure.
Also, a watching a proper defragmenter run was an OCD soothing experience before we had stray kitten and powerwashing videos galore. I know I'm not alone with this experience.
I know for sure NT4 didn't have defragging built in, because I was a Windows server admin back in the primordial soup that was sysadmin'ing in the 90's.
>OCD soothing experience
I've always felt it was a certain kind of person who found amusement in watching a defragger work. I'm absolutely sure that 3rd party tools made sure to incorporate the equivalent blinkenlights to give the impression that their tool did something useful.