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.
Same as me. But I would like to stress that NextDNS Xiaomi filters aren’t best. They miss out a lot of trackers. So, you might have to add those individually.
I have also recently switched to CrDroid for my device. The activity of these blockings have dropped by 30%. Lot more privacy for the device.