TL;DR It does NOT stabilize your rolls. It DOES Stabilize your number of successes/failures (which I think is bad for the system).
There is a lot of confusion in this thread about how this works.
If you understand the mechanics of bg3 and are try to optimize your build you should definitely turn it off. If you don’t care about that and just want to play without understanding all the mechanics I would still turn it off, but it’s fine to leave on probably.
What it does is make rolling a success more likely the more you fail and vice versa. It also applies to enemies. So if you have put all your resources into Armor Class so that enemies miss you more often… well you might be marginally less, but the whole point is that enemies will hit you at a fairly regular frequency and you will hit them back at a similar rate. It means you won’t keep failing and that you won’t succeed at everything.
It punishes you for being really good at something and rewards you for taking more actions rather than being good at the ones you take. It is kind of good for new players that used a scuffed build because it means they won’t fail all their checks even if they made terrible choices, but if you make some basic common sense choices like getting a high armor class or pairing expertise in stealth (Rogue 1 ability) with a high DEX then it can be very frustrating.