The specific purpose is to 1: avoid potential shock hazards from transformerless "hot chassis" items...such as the old "All American 5" tube radios. Of course, you can still easily get shocked from *internal* voltages created by the power supply of anything that runs on tubes (except old battery-operated tube radios) There are very low-end cheapo guitar amps from the 50's-60's that lack a power transformer. How can you tell? Easy. When you see tubes such a 50L6, 35W4, 25L6, that is your indication that the heaters are being operated from the AC line, and for that to happen, generally one will find one side of the incoming AC line connected to the chassis. There is an attempt to connect the neutral (wide blade) side of the AC line to the chassis, but of course it's always possible that your electrical outlet is/was wired incorrectly. That produces a shock hazard. If you don't work on those older amps nor 5-tube radios, there is almost no need from this particular cause. 2: More saliently, an isolation tranny is good to have to avoid line-shock hazards when using a variac, which is after all an "autotransformer" where one side of the secondary is connected to one side of the primary. Again, if the common primary-secondary connection attaches to the "hot" side of the AC line, it could present a shock hazard relative to pipes or perhaps the metal frame of a workbench that is sitting on a concrete floor.
I doubt it would have effect at all on say fluorescent light or dimmer interference.