@Mytoast Admin, Thanks for posting in Q&A. Based on my researching, this policy setting is used to
enable single sign-on (SSO) for Google Chrome. When user sign in to supported websites on Google Chrome, the Azure AD credential will be passed to Google Chrome and it will automatic sign-in with Microsoft work or school accounts without user input any credential. Here is a link shows the user experience when the setting is enabled for your reference.
https://scloud.work/google-chrome-single-sign-on-sso-azure-ad/
Note: Non-Microsoft link, just for the reference.
Hope the above information can help.
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