This lets people use your computer as an entry point into the Tor network and camouflage the traffic as a video call between you and them (if the regular, publicly known, entry nodes are blocked by their ISP or gouvernement). The snowflake extension will then forward people’s traffic through the Tor network, and services they use will only see a tor exit node’s IP, not yours. As long as you trust Tor to be secure and anonymous (I personally have very high trust in its guarantees), you don’t have to worry about legal consequences or being blocked by services.

I used to run a few (public) tor relays (entry or middle nodes, not exit ones), including one from my home network and IP. Never had any issue except for one service which blocked everything that had anything to do with Tor. I reached out for their admin, who claimed Tor users can show up with any node’s IP (which they definetly can’t, only exit nodes will forward traffic to the regular internet)