There's conflicting messaging on it, some on Steam claim when they implement it that mods quit working, and others claim that just isn't true... I don't know as I'm not paying what Capcom wants for some of their games, but I know that it messed up compatibility with the Steam Deck when they added it to Monster Hunters in January.
If I owned one of the games that might get it, I would look into keeping a second copy that isn't updated though. Or turn off auto-updates in Steam.