Yes, I believe so. It may even be cherry fruit worm, or more likely I think, a close relative. Everything checks out, including the silk encased pupa, which Ive observed. Hawthorn is listed as an alternate host for. cherry fruit worm, and this fall I ate haws that had identical looking entry holes with identical looking larvae inside as on my Physalis.
If cherry fruit worm is anything to go on, covering at night may not suffice:
:
Im at a bit of a loss for potential remedies. It seems systemic pesticides may be the only solution. Maybe its time to bust out some crazy JADAM Asimina leaf brew ?