I've tried it and it doesn't seem to be working for me. I'm getting clipping with the whole section, not just the piece I was looking at to select. Annoying.
Also annoying is the wood issue. I've just used ~1500 wood on County Crossing and all I have done is the outer walls and almost all of the ground floor of my planned 8 storey settlement building that's 9x7 large floor sections. I've plans for an inn, kitchens, food storage, laundry, bathhouse, lounge and 24 flats, with 2 lifts and 2 fire escapes. I think it's going to take 5000 wood.
It seems a bit.... inconsistant. I couldn't get a piece of floor to patch a random hole in the floor of a house because it was clipping with the wall despite there being no other issue. Keep at it and try obscuring what the camera can see when you're trying to place too. I used it fine in a few places (patching jagged holes in walls with a piece buried in the wall. Went round the other side and buried another piece so I had a nice surface inside and out, no issue.)