it is made to smooth the clutch engagement so the clutch doesn't snap closed when you release the pedal. It makes the car appear smoother(which doesn't really work) and keeps you from shocking the drivetrain as much. On all firebirds and corvettes this little bass terd is in the middle of the frikin line and you need an 8" long 1/8 drill bit to drill it out as it has been known to plug when the fluid gets hot and old and totally F you in A after some hard driving. in brakes i would say it may play a role in residual pressure.
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