How does "hide IP address" work?

New Contributor

Recently, we've noticed that Google captchas aren't displaying for a few sites.   If we wipe and reload, it works for a while but randomly stops working.   After some troubleshooting, we discovered that turning on "hide IP Address" in the Safari privacy settings seems to fix it.


Naturally, searching for answers as to how it actually works turns up hundreds of user focused results.   Does anyone have any information on what this option actually does?  I mostly need to ensure it's not going to break something else and the security side of me also wants to be sure it's not doing something that could cause other issues.