https://en.wikipedia.org/wiki/War_emergency_power
Related is the "Battle short" switch on Navy computers, which shorts the fuses with copper bars and disables over-temperature faults, so you can keep the computer running during a battle even if things are going bad.
In his youth, my late dad flew P51 Mustangs in the Korean War. He told the story of how he and another guy were flying a photo reconnaissance mission (I think it was) when the other guy was shot down by ground fire, crashing not far in front of Chinese lines. My dad then shot it out with the Chinese ground troops, hoping to keep them away from his downed colleague until help arrived. Back at the base, my dad's best friend mistakenly heard that it was my dad who'd been shot down; as my dad described it, his friend climbed into another P51 and flew all the way across Korea at "full military power" (the term he used) to get in the fight.
My dad's shot-down colleague was killed in the crash, it turned out. I vividly remember my dad telling the story late in his life and getting pretty emotional: He was certain that, in trying to protect his colleague, he had killed scores of young men who had little choice about being there, who probably were just farm boys like him and had parents and maybe wives and children at home. I don't think he ever got over that.
If your life depends on it, by all means use it. In all other circumstances, save the maintenance crew the extra work and the taxpayer the extra costs.
It is just a matter of raising a limit. On the mechanical side of things each part has a certain lifetime, you can increase it by reducing strain and vice versa. So they probably already know how much the engines can be pushed if you only need a total lifetime of 1h instead of hundreds or hours. They most likely extrapolated that 2% from this.
During WW2 there's a good chance they had no idea what they'd be up against whilst they were developing this jet, so they built in a theoretical 2% improvement switch with a large caveat incase the 2% improvement ever gave them the edge.
I think the use of the VMAX switch is only warranted if the ship would otherwise be destroyed or lost if it were not used, which seems like a very unlikely scenario.
- Block IIA (RS-25C): First flown on STS-89, the Block IIA engine was an interim model used whilst certain components of the Block II engine completed development. Changes included a new large throat main combustion chamber (which had originally been recommended by Rocketdyne in 1980), improved low pressure turbopumps and certification for 104.5% RPL to compensate for a 2 seconds (0.020 km/s) reduction in specific impulse (original plans called for the engine to be certified to 106% for heavy International Space Station payloads, but this was not required and would have reduced engine service life). A slightly modified version first flew on STS-96.
- Block II (RS-25D): First flown on STS-104, the Block II upgrade included all of the Block IIA improvements plus a new high pressure fuel turbopump. This model was ground-tested to 111% FPL in the event of a contingency abort, and certified for 109% FPL for use during an intact abort.
Think it as redline in a car; take away the limit and the engine can rev higher and possibly get few hp more, but the engine won't be in any good shape after that.
It is basically a 'you are trading away this engine to save your life' setting, but sometimes that was a necessary thing to do.