Does exactly was it says it does!
An observation: Having this active requires it to be installed dead last after EVERYTHING ELSE. If, say, I were to add"High FPS Fixes" or other patches through KotorPatchManager with "...Progression" already active, I lose the ability to back out of the level-up screen(effectively restoring the vanilla game's constraints where it would not let you exit the level-up UI to return to normal gameplay at all until you leveled up.)
This I confirmed via live testing/gameplay last night: I had to uninstall and re-install "....progression" after adding the KPM patches so it effectively sits at the very END of the installation order. This fixed the issue and I could back out of the level-up screen freely.
FYI I'm using KMRP 1.5.1 and KPM in my setup.