I understand as light moves away from gravity/curvature, let's use earth as an example, it is redshifted. Then it is usually said imagine a light clock that ticks according to the frequency of the light, and an observer at a location higher above earth will see earth clock ticking slower because the light received from earth is now shifted to a lower frequency.
Does this imply then, time only appears to be slower to the observer at a higher location? If the far away observer's local clock indicates 2 hours have passed, the observer would "think/observer" that earth clock only shows say 1 hour because the light it received is shifted, but the earth clock itself actually ticked 2 hours too. If this is the case, when you bring the earth clock up to the same height as the observer, wouldn't this "illusion" of delay go away, and the two clocks should show the same time? But clearly that's the wrong conclusion. The correct one is the earth clock would be slower when brought to the same height of the observer.
Edit: I'm making edit here in response to multiple answers since they seem to point to the same key: clock ticking slower is not an observational "illusion". Then it seems the way that the gravitational time dilation is introduced and calculated in typical textbook (such as Caroll and Ostlie) is confusing. It uses the shifted light frequency observed by a faraway observer to argue that earth clock ticks slower, which implies it's an "observational" effect.