Allow applications to run in the background

This setting only applies to UWP app, which are default Windows apps or installed from the Store.

UWP was designed to suspend apps, when they're not running in the foreground, in order to save battery life. If your app is suspended, then it's paused at the CPU level and not checking for new data (like a weather or news app).
 
Most UWP apps don't consume a lot of CPU in the first place.

UWP apps were originally designed to run on Windows Phone. You can suspend or close them with no problems. This setting really doesn't make a difference unless you're using a laptop on battery power.
 
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