Energy transfer from handguns does not cause enough cavitation to create permanent damage in tissue.
Energy transfer from common service caliber handguns does not cause enough cavitation to reliably
create permanent damage in tissue, but a stronger statement can not be justified by the facts.
It is well-documented that it can cause permanent damage to inelastic tissue, and there is also evidence that, under certain circumstances, it can even cause permanent damage to elastic tissue.
This article discusses injuries to arteries caused by temporary stretch. According to the article, these types of injuries can be found in patients with "gunshot wounds inflicted by handgun or rifle".