Knee wraps are used, particularly by powerflifters to diminish the strong pulling forces on the lower quadriceps and the quadriceps tendon where it attaches to the patella (knee).
This will (might) safeguard against the chance of chances of detaching your quadriceps tendon or damaging the muscles of the quadriceps. I would theorise that the risk of developing Patellofemoral Pain Syndrome or PPS is probably rediced by using wraps by reducing overload of the patellofemoral joint.
But...using knee wraps for squats and particularly in those who already experience patellofemoral pain is not always recommended. Typically many wrap users do so because they have painful knees and see the wraps as some sort of palliative for this.
Knee wraps can stop the the patella from deviating too far laterally. This can be detrimental because the patellofemoral mechanism is a multi plane movement system.
I would suggest knee wraps are probably best employed as a therapeutic device for knee injuries rather than an aid to training with pain or preventing injury as mentioned above.
I don't use wraps and have never experienced knee pain, injury or as far as I know de-generation. But focusing on the biomechanics of the squat, stance, foot postition, posture are sure ways of preventing injury over relying on knee wraps and then employing excessive weight and bad form. Just my humble opinion.