Privacy Enhanced Filter; what is it and is it any good?

So the Dutch National Cyber Security Centre (NCSC) published a piece of software on github which they call Privacy Enhanced FIlter.

From the readme:
"A research prototype application demonstrating network traffic pseudonymization using a model-driven engineering approach.

It uses declarative definitions to parse the following data structures:

Link Layer: Ethernet 2 Frame
Internet Layer: IPv4, ICMPv4, IPv6 partially
Transport Layer: UDP, TCP
Application Layer: DNS formatted application data (DNS, MDNS, LLMNR, NBNS)

These are used to find network packets containing valid DNS requests and responses.

Supplied is a Java implementation of a format preserving encryption algorithm that is used to pseudonymize IP addresses of internet packets containing DNS data."

I am a noob regarding the subject matter, but as I understand it this intercepts packets and replaces data which could identify someone with anonymized/random data (IP addresses?). I would like to give this software a try, but I am completely clueless to the operation of the software. Any java developers who can tell me more?

Does work real-time, or does it clean up logs?
Does this work on a router level, or on a client level?
They state its a prototype, but can it be used in an operational environment (home internet)?
Any backdoors? (the NCSC is a government institution)

Announcement on their website:
https://www.ncsc.nl/english/current-topics/news/privacy-enhanced-filter.html

Github link:

Fun fact: they published the software earlier, but had to take it offline because it contained personal details (of the developers I think). Oh the irony.

Hopefully the L1T community can shed some light on this piece of software, as it looks promising.