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From this very documentation:

Use this setting to enable or disable hoisting of themes files to the main project. If you disable this setting, each project receives a copy of the theme's files, which can be considered redundant [...] It's generally advisable to enable hoisting, as it yields faster deployments and faster loading of your project's sites, because the files are the same for all projects and can be deduplicated.

It ensures that there's only one copy of Material's theme files, i.e., CSS and JavaScript files. This improves caching and makes projects load faster, because the browser has to download only one copy of the same resources.

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@jorgegomezcq
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@squidfunk
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