Yup. Buoyancy Compensator for, ahem...
buoyancy, and dry suit for, ah, keeping
dry.
Dynamic instability is when a bubble can move about with difficulty controlling it and cause instability. Which means if you have a bunch of gas moving around in your dry suit, you can have exaggerated trim issues as the bubble moves.
Some agencies teach the use of the dry suit only for buoyancy. But it's my opinion that they do this because they think it's easier to
teach, not because it's a superior way to dive.
And yes, if your are weighted correctly, by the time you take out the squeeze, you may not need much gas in your BC anyway.
With that said, sometimes when the water is very cold, I really ramp up the argon volume in my suit.