Is there a benefit to doing this? Is there a drawback?
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Welcome to MiYodeya Daniel and thanks for this first question. Great to have you learn with us!– mblochOct 3, 2022 at 2:45
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If this is done when there are many people at a seuda, it could be simply to allow people to make hamotzi without waiting for everyone to wash first. Some people also do it to split up the job of cutting all the challah!
However there is a halachic angle as well, if they are being yotzei with the Baal habayis on the bracha, they would have to wait until he eats before they eat if they themselves don’t have lechem Mishnah. (So as a head of a household, people give them the honor of not having to wait for the Baal habayis)
The Shulchan Aruch in 167:15 says;
ואם הוא שבת צריך שיהא לפני המסובים לחם משנה חוץ ממה שלפני הבוצע ואז יהיו רשאים לטעום קודם הבוצע
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1Even that "halachic" angle is essentially a practical one. For a more pure halachic angle maybe compare this with the practice of some to say their own kiddush. Indeed we almost never allow [nowadays] people to be motzi each other in brachot unless there's a specific need such as lack of lechem mishna for everyone. If you have LM for more people, it seems very consistent to let people make their own brachot.– Double AA ♦Oct 3, 2022 at 12:17