It’s important to escape every string that comes from a user input, and isn’t already sanitized. For example, if you have a “product number” field with validation that only allows A-Z and 0-9, it’s okay to skip that one. Then again, it’s harmless to add this to that field. Good practice is to use it on all fields unless you have a good reason not to.
The bake tool will use it, if you generate your views that way. Fully automating it can be problematic, because there are almost certainly going to be cases where it does actually break your functionality.