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It is for the cruise control. When you step on the brake pedal it disengages the cruise control when its on and engaged.
Sorta but not really....there is another switch in the brake light switch that disconnects the cruise when you step on the brake.
The vacuum valve the OP is referring to is the emergency "failsafe" in case the electrical switch does not work or the cruise transducer malfunctions and the vacuum going to the servo cannot be bled off.
In some cases the transducer will not let the carb close and the engine will run out of control,this is where the "failsafe" valve comes into play.You will have to hold on the brake pedal partially bleeding off the vacuum until you get the car stopped and the ignition shut off.Sometimes you will have to physically unplug the hose on the servo or the one going to the transducer to be able to drive the car.