Not my understanding, NR - the FMC will only AUTO-UPDATE blah blah blah, but will update just fine if it has 2 separate DME manually selected readings within the required angle spec. You could try choosing 2 in flight and go to manual on both and see the update.
So, in answer to the OP, yes it does, providing the stations have sufficient angular displacement from track. On the 737 you will need to enter the 4 letter type designator for the station as well to allow the system to use it in auto though.