I will try to explain. A ground loop is an undesired current, in a conductor that is connecting two points in a circuit that are assumed to be at ground potential.
For those that want to escape the explanation, a ground loop is unlikely to cause a problem in a stock A-body. Why?. Because stock A-bodies do not have an ECU, or smart ignition module. Some call the 4 or 5 pin ignition box an ECU, but it is not.
If EFI, an ignition with smarts, AFR gauge, or an engine management system is installed, then there are great concerns for how for how connections to ground are made. I will call the prior, smart devices, that have a micro-controller. The smart devices make measurements and control things based on those measurements. Measurements are often made on sensors that are referenced to engine ground. Examples are temperature sensors, O2 sensor, knock sensors, and others. Some more modern sensors are two- wire isolated, and are isolated from the engine to avoid ground loops.
While adding or tying grounds together is a good thing, it is is also important to insure that the smart device share the same ground as the engine sensors. If it does not, sensor readings will be incorrect, resulting undesired control behavior under starting conditions.