There's is a thought process of isolating the ground of the output of audio devices and and forcing the inputs to do all the grounding. This works because you only need to ground a shield once.
It creates a better star ground because all individual grounds meet back at the power source and only the power source. Think of an upside down tree. On the tips of the twigs are the 3pdt then the PCB then the jacks. Adjacent are the jacks and cable(only "touches" one jack), then DC connector, then PSU. There's a bunch of branches(pedals) all like that. And they all never touch until the PSU.
The down side is if something breaks...
Shield is compromised at one end of the cable, jack gets dirty, etc. Then you could loose your shielding and pick up noise.
Ground loops on pedal boards are more of a myth, IMO. For ground loops, you need distance and usually things operating on different circuits.
That's why you see them on DIs a lot.
FOH is operating on a different circuit than the stage. That means if you connect grounds of the pedal board and the mic cable to fog, you've completed a loop that goes AAALLLLLLL the way from the pedal to the wall to the main breaker through the mains backplane to the FOH breaker to the FOH mains power plug and through its power supply. And, as we discussed, you only need one end of a shield grounded. Hence, the ground lift.