The LLM's very confident assertion that it's a plug-cutter drill bit is obviously wrong, but scrolling down the image search a bit reveals the truth (allegory for how "AI" is useful but no panacea?). It's a Panel Pilot bit. If something like laminate or OSB is overlaid on top of an opening like for a window or sink, you plunge it through the cutout area and use the unsharpened part like a crude follower bearing. I would be very careful using it on any material more than 1/4-1/2" (~ 6-13mm) .
It also looks like yours is way shittier than the one in the link, LOL, but that could be a trick of the camera angle.