What is the function of the WEBCACHE folder?

As of 2017, SketchUp changed to using an embedded Chromium web library instead of relying on the OS’s libraries. This was done to improve consistency in the face of a great many issues from different OS versions of the web libraries. Most web-related items in SketchUp already use Chromium, and the rest will be migrated at some point.

I believe that folder is where the embedded Chromium web library now keeps its cache (the equivalent to the folder where any other browser keeps a cache). If you prevent SketchUp from writing there, it is likely that many items that use the embedded Chromium will cease to work correctly.

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