What does the rotating Wi-Fi address setting actually do?

The setting changes the MAC address your device presents to the Wi-Fi network. That's a local network identifier, and your device can choose what address to use without changing anything on the router.

With the setting off, it uses its hardware address. Fixed uses a private address that stays the same for that network. Rotating uses a private address that changes periodically, not necessarily every time you reconnect.

The warning is about the identifier, not necessarily about the strength of your Wi-Fi password. A network can have password protection and still see the MAC address your device uses.

Rotating is more useful on public Wi-Fi because changing the identifier makes it harder for the network to recognize the same device across visits. Fixed also helps limit linking between different networks, but a network can still recognize that fixed address when you return.

Neither option makes you anonymous. A network may still recognize you through a login or other information you provide.

For home Wi-Fi, Fixed is a reasonable place to start. Your router can keep recognizing the device by the same private address, which is handy if you use device lists, address reservations, or access rules. Rotating might make it show up as a new device or disrupt rules tied to its old address.

One practical snag with Rotating is that some networks use the MAC address to remember a device after sign-in. If a public network keeps asking you to sign in again or has connection trouble, Fixed may be a useful compromise. Turning the private address off is another troubleshooting option if the network requires it.