According to my reading of this article written by an opponent of Federal Vision, physical water baptism is required for salvation according to those who advocate the framework:
Some would insist in all this that they do not deny the doctrine of justification by faith alone, but say that faith and salvation are both conferred through the sacrament of baptism. What this does, of course, is to make everyone in the church a believer, whether or not he really is a believer, and it also gets rid of the need for conversion since everybody is a Christian from the moment the water of baptism is sprinkled upon him.
(my emphasis)
Is this an accurate characterization of this theology or is it a caricature?