The MSDN documentation is very unhelpful in this regard as I came across this method and wasn't exactly sure why I'd want to do this or not do this.
Note: should anyone respond with "well it reads the file into memory" with no further explanation will be downvoted.
Russ is right about the behavior - the reason you would use it is to avoid keeping the file open/locked - especially since the client might be slow, or time out, it may be more preferable to make the memory tradeoff and buffer the file into memory, so this bool lets you skip having to ReadAllBytes into a buffer on your own and then write the resulting buffer.
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