This might allow lsan to find more leaks that would have gone undetected. When lsan searches for leaked pointers on the stack, if a leaked pointer that was pushed to the stack in a prior function call would not be scrubbed on a future function call, then the scan will see the pointer on the stack and not mark it as leaked. Such holes can exist in the lsan runtime where there may be uninitialized data. Adding auto-var-init can scrub some of that data and might be able to catch more leaks that would've gone undetected this way.
See https://bugs.fuchsia.dev/p/fuchsia/issues/detail?id=111351 for more details.
This should note that it won't cover all possible uninitialized stack contents, such as those used for register spill slots or unused portions for alignment, or even local variables not yet in scope at a certain point in the function.