Yes, it won't fix the issue with other players mics (unless they toggle it), but it will prevent your mic from stuttering and cutting out.
If you ever hear a friendly and their mic is doing it, if you tell them to turn the setting off it will sort it out.
It's called automatic gain control.
It may also be responsible for lowering some people's voice volume in match (Vs desktop), even when turned off.
Or it's just a general bug/ass-backwards working as intended feature, that arc raiders is able to take control of the mic and lower the volume in game (even with automatic gain toggled off).
Either way, disabling it fixes the stuttering and stops arc raiders messing with mic gain in windows (affecting calls etc).