Yes, they do.
In my 4-banger spit I had tank foaming problems and the engine would quit often. A fourstroke is less tolerant of fuel line bubbles than a two stroke. After fitting a felt clunk, running became absolutely reliable.
It works like this:
The felt sucks up all fuel it comes into contact with by capillary action, and spreads evenly all around the felt, so no air is prsent anymore. So as long as there is a fuel puddle, or fuel spray/foam/(younameit) it will replenish the fuel used up by the engine. When the tank is completely empty, air can break through that fuel barrier, and the engine very suddenly stops. There will be hardly any warning or lean runs.

edit-PS
In whinemaking, I used to use this kind of filter to get the last bit of that precious fluid out of the fermenting jug without disturbing the lees. I stopped this hobby some ten years ago, because it tended to get out of hand