What Are Karmic Dice?
Karmic Dice, sometimes referred to as “Loaded Dice,” is a setting feature found in the Gameplay Options menu. When enabled (by default), it prevents streaks of low rolls, ensuring a more balanced outcome.
However, Karmic Dice affects all rolls in the game – including those of your enemies – often favoring the roller with better results. In essence, enabling Karmic Dice speeds up combat and raises the stakes, as attacks are more likely to land and deal significant damage for both you and your foes.
I wouldn't recommend having Karmic Dice enabled as this tends to give enemies a "lucky" advantage who might not be equipped with the strategy of clever player.