For the most part, WordPress plugins work well with just about any host. However, a plugin can duplicate a feature a managed host offers (which gums up the works), or it can kill performance. There are also plugins that pose security vulnerabilities or are known to be vehicles for spam. That’s why many hosts (and most managed WordPress hosting companies) have a list of disallowed plugins.
In other words, they have a list of plugins that they either block outright or seriously discourage you from using. By knowing which plugins to avoid from the get-go, you won’t have to repair a finicky site. Or fight with your host about it. You also won’t go through the trouble of finding and using a plugin for something your web host already does or a replacement for the functionality that you want.