@Hazel123 The Autorun.inf was responsible for automatically executing whatever malware was on the drive. It was a super common infection method in the early 2000s, which is why Microsoft disabled that functionality for USB drives. That's all Panda's utility is doing: disabling AutoRun. You can still pass malicious files back and forth between a flash drive and a PC; it just won't be executed automatically. But that is true without Panda's utility also, since 2009-ish.
Panda's own page for the utility says: "The drive can otherwise be used normally and files (even malware) copied to/from it, but they will be prevented from opening automatically."