If I'm playing an immersive misery simulator like a heavily modded S.T.A.L.K.E.R. Anomaly then encumbrance and inventory space plays a vital role in not only immersion but also gameplay systems like loadout choices and how much supplies and medicine you chose to bring and what that means in terms of how long you can stay out and how much loot you can carry back to base.

In games like Starfield and BG3 I find encumbrance mostly meaningless and annoying, and just exists as a means to slow down early game economy by preventing you from picking up literally everything not nailed down and selling it off. And in the end I typically end up thinking there are probably better ways to accomplish this that doesn't leave you with an annoying encumbrance system as a byproduct.