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Only if you just need thread and nothing else. It doesn't convert completely, only half of each shard type and half of your boxes.
I shard all IDs/EGOs in the dispenser that I'm missing until I'm out. If you do the weekly mirror dungeon each week and the dailies, you'll have 2K+ boxes at the end of the season. Currently, I'm at 1200... and that's after sharding the 2 IDs and the EGO I missed last Walpurgis.
This is just for collection purposes though, there's a lot of stuff from at least Season 1 that can be skipped with no worries.
Only grind the mirror dungeon if you like doing it, the returns on time investment is pathetic (9 boxes, if I recall?). If you stick with this game for several seasons, you'll outpace the rate at which IDs/EGOs come out naturally.
I started in Season 2, and cleaned out the dispenser fully at the end of last season.
After that, I just let my Shard Boxes be converted to Thread Boxes since Thread is always a welcome resource. For Threadspinning or Uptying, they're very welcome.
Doing your weekly MDH runs for both the Lunacy and Weekly Bonus BP Rewards would give enough Shard Boxes for you to get an ID or two whenever they get released. With how Dispensing [Current Season] IDs/EGOs changed to a week after their release, it gives you time to farm more Boxes before they're available for sharding.
Just go slow and steady. Doing a run or two run a day, as well as doing your daily mission, goes a long way in stockpiling your Shard Boxes.
Spend Egoshards. You can turn them to Thread but not vice versa.
1) Half of your shards turn into thread, and half of your boxes are turned into thread boxes.
This is a bad deal, because you can convert shards into thread any time you want, but not the other way around. So to mimimize the losses you go on a bit of a shopping spree in the dispenser.
2) Seasonal rotation. All story id/ego from current season become unavailable in the dispenser for the next season, while the previously rotated out content comes back.
This makes all the current stuff a priority craft, if you don't want to wait until Canto 9 to get it.
-Half your Shard Boxes become Thread Boxes, and half your Shards become Threads.
-You lose acces to the content of the season that just ended until the season thereafter has ended (4+ months), with the exception of anything flagged as non-seasonal. It can't be sharded or extracted.
So, you'll probably want to...
-Spend your Shards on any current-season IDs or E.G.O's as priority #1. whatever seems worth getting to you.
-Consider spending leftover shards on Uptier IV for IDs or E.G.O. Takes about 50 of the Sinner's shards for level IV for IDs. Worth it on top-tier IDs.
-If you're holding onto to any Guaranteed 000 ID Tickets, and have an abymally low rate of getting a non-duplicate ID, consider keeping them until the season switches, then spend it to get the full 50 Shards (instead of them being halved).
https://steamcommunity.com/app/1973530/eventcomments/4629232694089229967?snr=2_groupannouncements_detail_
this is the roadmap for this season and every second week is maintenance week.