When you use that function, the result file is the same as if you had rendered to 44.1KHz 16 bit without dither. So it wouldn’t be recommended, and a dithered file would generally be considered better quality, and the proper way to do it.
The manual has curious wording for this function, which might make somebody think that the result would possibly be higher quality.
“Changing the Audio Properties
You can change the declared sample rate and sample accuracy of audio files. Changing these values does not process the audio file in any way (in contrast to using Save as).”
But a “Save as” or a render forced to 16 bit would give you exactly the same result as this function (which can be confirmed with the File Comparator), so there’s no advantage converting to 16 bit with it, and the disadvantage is there’s no dither used.