I would never enable this setting unless specifically advised by a SN representative in writing.
If you wish to test the functionality though I would choose a simple and clean environment that you can restore to. Ensure that there are no software models in SAMP, delete models if necessary, switch on the 'auto create software model' setting and start your discovery feed. Once you are upto date with your discovery data you should see software models within SAMP, run a reconcilliation to complete a full cycle of using the setting. everything discovered should have a software model created regardless of whether a software model is required or not.
Restore the environment to previous configuration with the auto create setting switched off.
This value has caused us months of issues before we found that it had been enabled. Now when we are configuring a publisher we delete all software models, set entitlement status to 'retired' and build the product and versions manually creating Software Models and linking them to Discovery Models and finally setting entitlement back to 'in Use' as and when required.
