Where the function is intended for
Masking is not a substitute for good positioning. A poorly aimed camera that sees a lot of public space will not automatically be proportionally adjusted by placing a small flat over it.
A privacy mask is intended to keep a fixed part of the camera image out of view, for example a window of the neighbors.

Masking is not a substitute for good positioning. A poorly aimed camera that sees a lot of public space will not automatically be proportionally adjusted by placing a small flat over it.
Determine which view is not necessary for the security purpose and whether that part remains in view in a fixed location. With a PTZ or a changing viewing angle, this requires additional attention.
Place the mask only over the specific area you don't want to capture and reconsider the mounting angle if a large part of the image needs to be covered.
Check live view, recording, playback view, and app on multiple devices. Also test day and night views to confirm that the mask surface does not unexpectedly cover relevant visibility.
No. It works for images that are then recorded.
Technically often yes, but keep the security goal and usability of the camera in balance.