tl;dr
I turned this setting off and a lot of my stuttering and fps drops in games went away.
I stayed on windows 10 for a long time, just recently upgraded to windows 11. Ill use two examples. In Doom Eternal and lotr Return to Moria I was getting a lot of frustrating fps drops and stutters where I was not getting them in windows 10. Took a while but I finally found the cuplrit, I disabled the setting and the stutters went away.
Your mileage may vary but if you've been having similar issues it may be worth trying.