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It is a tool like anything else. From student perspective I perfectly understood reasoning for it and how useful it would be when person doing review actually cares. Being able to easily find most obvious things and then cross-reference is very useful.

Problem comes when users do not care and blindly just believe in percentage value and some threshold

"lots of false positives"

Maybe this is okay when we're talking about plagiarism and you can review manually, but humans can't reliably identify LLM written text

Totally agreed. I'm personally only relying on it to identify cases of material which was directly (with minimal changes) copied from a third party source without attribution.

For what’s worth (for you) the results would be the same if it identified all of them as plagiarism

No, it would definitely not. There are a number of false positives, but significantly less than all submissions. It also specifically highlights areas of concerns along with a cross-reference for me to review. I would not be able to do all this manually.