<spoiler>My theater got a huge pop for JK Simmons return. Also huge gasps when Mysterio blows his identity to the world. He straight up puts Peters face in Times Square.</spoiler>
The explanation for the Elementals is that drones project illusions, but use weapons to cause real damage (gunfire, Sonic cannons, etc)
Edit: I saw the Chinese Clip and surprisingly it actually uses a different take when Mysterio says Peters name. The one in the US statics out for a second like Peter is going to avoid having his name exposed, but then cuts back and the Bugle puts a headshot of Peters face up.