It might manage some enhancement and nullification... but, of what are big questions. It seems to have been used as a catching and restraining device... but, I very much doubt that those were all of its intended functions.
The trigger seems to have been "lock onto the nearest, strongest signature you can find: make sure you are worn"... which would be a safe enough thing to do when you're supposed to be a set of clothes belonging to a Primal God. Girl needs to know her dress will come back to her, you know. (Saves hunting for it. )
If it is there for purposes of stealth, rather than outright protection... then it could obscure or muddle scent, tracks, power-output readings, infra-red (so be the Universe's best blanket, as well), targeting from outside magic and trancendentals... and a list of other features I can't immediately think of. As well as boosting all the sneak-worthy attributes a body has. As long as it regards you as the owner (temporary or permanent -- and, I'd love to know what criteria are needed), that is: otherwise, it'll likely just restrain and trap you, negating any sneaking you might try to do.
Trapping is part and parcel of being sneaky, too.
Edited by Euodiachloris, 23 January 2014 - 06:18 AM.