Yes the point of using 32bit float file format is to be able to reduce the level after saving/rendering and get a signal that is not clipped.
Saving a audio file that has a signal above digital 0dB FS , and being able turn the signal down without it being destroyed.
I think of it as a cork in a glass tube, the cork has 24bit, now I fill the tube with water and it floats up. If it gets above 0dB FS then the converter clips. But I still have the full 24bit preserved, so I can turn down the level. I would say most users don’t bother and use 24 bit, and take care not to add so much level that the signal exceeds 0dB digital. It really just comes into play if doing stuff like Render In Place and doing it with to hot levels. Internally Cubase already uses 32bitfloat so it is only a problem when going to disk.
I myself use 32bit float since forever, simply because the file size difference between 24bit and 32bit float is not that big. And should I mess up, I would be able to correct my mistake. Have I ever needed it ?
I can not remember if I ever did,.
I am far more likely to record a signal to hot and have it clipped on the way in, and no file format is going to save a already damaged signal.
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