I've spent some time searching this question, but I have yet to find a satisfying answer. The majority of answers that I have seen state something along the lines of the following:
"It's just good security practice."
"You need it if you are running a server."
"You need it if you don't trust the other devices on the network."
"You need it if you are not behind a NAT."
"You need it if you don't trust the software running on your computer."
The only answer that makes any sense to me is #5. #1 leaves a lot to be desired, as it advocates for doing something without thinking about why you're doing it -- it is essentially a non-answer. #2 is strange -- why does it matter? If one is hosting a webserver on port 80, for example, they are going to poke a hole in their router's NAT at port 80 to open that server's port to the public. What difference does it make to then have another firewall that needs to be port forwarded? #3 is a strange one -- what sort of malicious behaviour could even be done to a device with no firewall? If you have no applications listening on any port, then there's nothing to access. #4 feels like an extension of #3 -- only, in this case, it is most likely a larger group that the device is exposed to. #5 is the only one that makes some sense; if you install a program that you do not trust (you don't know how it works), you don't want it to be able to readily communicate with the outside world unless you explicitly grant it permission to do so. Such an unknown program could be the door to get into your device, or a spy on your device's actions.
If anything, a firewall only seems to provide extra precautions against mistakes made by the user, rather than actively preventing bad actors from getting in. People seem to treat it as if it's acting like the front door to a house, but this analogy doesn't make much sense to me -- without a house (a service listening on a port), what good is a door?
You most likely don’t need on device firewall if your in your home network behind a router that has a firewall. If you‘d disable that firewall as well and one of your devices has e.g. SSH activated using username and password, than there is nothing stopping a "hacker" or "script kiddy" from penetrating/spamming your SSH port and brute force your password. The person than can take over your PC and can e.g. install software for his botnet or install keylogger or can overtake your browser session including all authentication cookies or many other bad stuff.
If you are using puplic WiFi, I’d recommend a good on device firewall, or better just use a VPN to get an encrypted tunnel to your home (where you would need to open a port for that tho) and go into the internet from there.
You most likely don’t need on device firewall if your in your home network behind a router that has a firewall.
Under what circumstance(s) would one need a device firewall? If I were to guess, I would say that it is when the internet facing device doesn't contain a firewall within it (e.g. some enterprise-grade router), so a dedicated firewall device must exist behind it.