When my university offered students the option to take their spring 2020 classes as pass-no pass, I believed it was doing the right thing. Alleviating the pressure of grades during a wobbly second half of the semester seemed like it would free students to focus on actual learning and less on performance.
In my experience, however, the option largely did the opposite: many of my students agonised over whether to take advantage of this option, not out of concerns of whether they would learn more deeply, but how a P grade would look to everyone else.