When it comes to data modification statements for OLE DB systems, the XACT_ABORT option with ON and OFF functions helps the Developer/Administrator to decide based on the requirements from the business.
For example lets take a stored procedure that will complete fully, only if the UPDATE statements are completed. In this case the XACT_ABORT option should be set to ON like below.
SET XACT_ABORT ON;
By setting this XACT_ABORT option to ON, it does not affect trapping of any errors using TRY-CATCH, but it helps in a scenario where the commit or rollback was successful or not.