Smart wall dimmer switch with small LED loads - what does the "bypass" do?

Did you state a problem you are trying to solve?
AC dimmers use a triac device that requires a*minimum holding current to stay latched and conduct through each half-cycle of the AC waveform. With traditional incandescent bulbs, this isn’t a problem—they’re resistive loads and draw plenty of current.

LED bulb is low current and will fall below the triac’s holding threshold and present as flickering, inconsistent dimming or the not turning on at all.

Is the bulb labeled as “dimmable”?