In case anyone else is wondering what the "mod" does: It does nothing. The .esp contains a single misc item with a weight of 1. The fix works by adding this item to the inventory until the encumbrance is at 0 (from a bugged negative value), then disabling the .esp, which would remove the items but keep the encumbrance value.
However, I am pretty sure that this is not needed with Morrowind Code Patch, and certainly not with OpenMW, as the former fixes the problem in the engine and the latter probably doesn't have this bug in the first place. According to the MCP description the problem occurs when the game tries to remove or drop more items of a type than there currently are in the inventory. In the unpatched game, this would reduce the encumbrance by the weight of the item times the amount being removed. With Morrowind Code Patch this no longer happens and I'm not aware of any other encumbrance bugs besides giving gold weight, which apparently can also cause issues.
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How does it change things when you made it in the CS?
However, I am pretty sure that this is not needed with Morrowind Code Patch, and certainly not with OpenMW, as the former fixes the problem in the engine and the latter probably doesn't have this bug in the first place. According to the MCP description the problem occurs when the game tries to remove or drop more items of a type than there currently are in the inventory. In the unpatched game, this would reduce the encumbrance by the weight of the item times the amount being removed. With Morrowind Code Patch this no longer happens and I'm not aware of any other encumbrance bugs besides giving gold weight, which apparently can also cause issues.