It will always work if you want 500 mA at 5V and if 480 Mbps is sufficient (assuming everything is USB2 compatible nowadays).

But sometimes the extra power or extra data transfer is not an option. For charging a laptop for instance, you typically need 20V, if your charger doesn't support that, you can't charge at all. And then there is Thunderbolt, DisplayPort, Oculink, where the devices that use these features won't work at all in an incompatible port. And I am not aware of device that strictly requires one of the many flavors of USB 3 or 4, but I can imagine a video capture card needing that. Raw video requires a lot of bandwidth.