In a word Bullsh!t
Any weld that is "wrapped" actually has far less chance to crack because of the slowing down of the heat dissapating away from the weld.
Most cracking occurs due to the residual stress in the pipe from bending etc, and then welding in these hi stress location causes shrinkage stress as well which also adds to the problem and then good old vibration, particularly harmonic vibration cracks the welds.
A very close second is hydrogen embrittlement which changes the grain structure on thin metals during the electro-coating process. This symtom for want of a better word will also cause cracking, particularly at bracket attachements.
Brackets that are not fully welded and that flex at the weld will crack as well.
All the wrapping does is hide the problem until it is too late.
Grinding of any weld so that it has a smooth surface and blends smoothly into each wall or surface of the steel plate and or pipe changes the way the stress travels through the weld and does a great deal to minimise cracking.
All the best, Ozzie