campers with 12V battery systems generally keep a keen eye on their battery voltage as this gives a very rough idea of its state of charge
they will note that as soon as there is a current draw, the voltage meter shows a significant drop in voltage - this is called voltage droop
voltage droop is the intentional loss in output voltage from a device as it drives a load.
without a designed voltage droop, when the current is activated, there will be a brief drop in voltage bit when it ceases there will be a brief “unexpected” rise in voltage which could be damaging to circuitry.
adding droop in a voltage regulation circuit increases the headroom for load transients (the system is designed for the initial higher starting voltage and for the lower in use voltage) and allows a decrease in the number of output capacitors, or gain better regulation with the same number of capacitors.
at high currents, as per Ohm's law, even a small resistance results in substantial voltage drop between the regulator and the load.