Yes, it does help to mask your IP address, but often I have faced issues with Video not loading.

I have found LibreTube to break more often than NewPipe due to this. There were instances where I was forced to use the Browser to watch the videos as Piped servers were having issues.

I honestly love all the efforts made by the devs of both to make YouTube so much privacy friendly and ad-free, but from POV of reliability, it just sucks for me.