If you want the ultimate immersive Paranormal Activity experience, you’ll probably want to turn this option on.
There’s also the ‘Immersive Movement Role-play System (IMRS)’ which removes all directions and UI elements from the game once you finish the tutorial. This mechanic will carry over to the Quest version of the game, alongside other key features from the PC VR release such as 3D audio.
You could never be certain at which point and where you were about to be scared, as things were never guaranteed to happen in the same place twice. Back in 2017, one of the big draw cards was the randomization of various scare elements through the game - jump scares, objects and other elements that appeared in one section of the house might appear somewhere different the next time you play.