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The option is meant to guarantee smooth streaming if needed.
You could have a look at your routers QOS settings, (Quality of Service) and its priority settings for each device/protocol on your network to see if anything looks amiss.
Heres an example for a netgear router, (yours may differ):-
https://www.laptopmag.com/articles/change-your-routers-quality-of-service-qos-settings-how-to
Failing that,
I`d open a resource monitor screen on your PC and watch the network traffic to see if steam (or something else), is hogging the bandwidth somehow.
(open task manager, open performance tab and you`ll see a link near the bottom for the resource monitor).
Running a good anti-virus and malware scan would also be a good idea.
You could also try resetting your network adapter.
https://www.digitalcitizen.life/how-reset-all-your-windows-10-network-adapters-just-6-clicks
Sorry if this isn`t much help, but its a place to start.
Steam Settings Downloads on right.Allow Downloads during Gameplay.