Yes, on FCA/Stellantis vehicles with SGW….only scan tools with an Active Autoauth account have full functionality.
That's
correct. And the yearly subscription fee for Autoauth isn't even that big of a deal. For $50/year you can use up to five tools and you can use it on multiple vehicles.
The problem is when you need to use a tool that's not on their approved list. Say, you want to use something like AlfaOBD to make small customizations, tell the BCM you installed LED bulbs here and there, etc. That's when a SGW Bypass comes in handy. There is the 12+8 cable, which IMHO is a huge hassle to use every time you need to access one of the modules via OBD2, or there is a more permanent solution of a little Bypass box like the one I linked, or ECRI, which is a few bucks cheaper. You can tuck it under the dash, or inside the dash if you have a RAM, and don't worry about it... unless you have to visit the dealer. Then you have to take it out, otherwise their scan tools, including WiTech, won't be able to connect to your vehicle, because they expect to the SGW.
My two cents about the SGW: it's a stupid money grab that has no real benefit for the consumer. It's an additional hassle meant to bring more business to dealers. In my case, it didn't work, I service my Mopars at home. But if you don't have the time to do the research, jump through hoops, and learn how to do it yourself, you will go to the dealer for sure. Buying scan tools that are Autoauth approved is also a decent option, but not needed IMHO. Personally, I like to stay away from Autoauth as much as possible. It's just a hinderance in the way of customers being able to do even the most basic tasks via the OBD2 port.