Chad Callihan explains an important function:
I used to always see the STUFF function in passing when reading blogs and kind of move past it without understanding what it was doing. I would see it used and think it’s doing something with a bunch of stuff and kind of skip over it since it wasn’t entirely relevant to what else I was reading. When I read about what the STUFF function actually does, it made a lot more sense as a name. More than dealing with “a bunch of stuff” the STUFF function is used for stuffing a string into another string. Let’s check out a few examples of stuffing data.
Granted, 99% of its importance is in combination with FOR XML PATH() but that’s still important. And we get to see a few other use cases for it as well.