I run an AMD Ryzen 3900X (12 cores, 24 threads) and an RTX2080 and hellball routinely crashes my stuff. It crashed me so hard the other day in the abyss that I had to do a full power cycle and reinstall before the game would even boot again. This file in theory will prevent that from happening again.
No, NWN is actually very well written and some parts are extremely efficient (take data usage for example). It just had to use some tricks with graphics drivers to get certain effects like shiny water. These hacks are less and less supported as new drivers come out and backward compatibility gets thrown out. For its time NWN is well written. Wait for EE, that should get rid of many issues like this.