Benefits of clicking Refresh all the time on the Windows desktop

Some people seem to right-click Desktop -> Refresh all the time. They seem to think that it solves computer problems in general, or that one must do it in order to keep the computer working properly. The habit seems more common in Asian countries.

My understanding is that clicking Refresh on the desktop does nothing other than update the desktop GUI and retrieve the latest state. Is there anything more to it?

Your understanding is correct. It does nothing else. This is just 'elevator button syndrome' (or, if you prefer, 'crosswalk button syndrome').

Refresh option is just used to display the desktop contents after some modifications has been made to the desktop folder and the change is still not reflected on the display...