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Theorically it should share compiled cache with users with your same videocard, so when a new cached info is created by any user this is backed and downloaded to other users.
This theorically, but as i've said no one exactly work how the shader pre-caching really works.
Imho is better to turn it down, forget about it and let your system build its cache when playing. Steam shader pre-caching doesn't seem to really give any benefit (at least, i wasn't able to have any benefit for having it enabled), it clutter the download section and only work if you use Vukan or OpenGL games.
Confused as to why Valve have it enabled by default, as does Nvidia from memory
That's done and handled by the GPU. Steam precache will only download already compiled shaders from Steam servers based on users GPU. In theory at least.