The wiring configuration you have (no neutral) is known as a switch-loop.
From renovation-headquarters:
Imagine you are the switch and you need current to flow through the circuit to power your electronics. It’s clear from the diagram that the current flows through the switch and the light. The trick is to draw only enough current to power the switch but not enough to turn on the light.
This used to be easy with an incandescent light (requires a fair bit of current to illuminate) but more challenging to achieve with LED lights given that they need little current to activate. It gets more complicated if the light is a smart bulb. Like the switch it also needs current to keep its electronics alive and isn’t designed to receive a throttled amount of current.
The Inovelli team instructed you to install a bypass (effectively a resistor across the load) because it ensures a trickle current is present (without relying on the light) to keep their no-neutral switch powered.
In my home, most of my lights are non-smart LED lights controlled by smart switches. The exception is a pair of sconces equipped with Philips Hue bulbs. There’s a neutral line available but what I’ve done is remove the old switch entirely, connect the wires, and close the junction box with a custom flush-mounted metal plate I created. Then I covered the plate with a magnetically attached Philips Hue Dimmer Switch. It’s a wireless remote-control that looks very much like a standard Decora wall switch (4 buttons: on/brighten/dim/off).
The end-result is that the Hue bulbs are always powered (no one can cut power to them short of turning off the breaker) and anyone walking into the room can still manually control them via the wall-mounted dimmer switch.
Similarly, I have two tablelamps in another room outfitted with Hue bulbs. I wall-mounted a Hue Dimmer Switch in a convenient spot to allow anyone entering the room to easily control the lamps.