I think the idea is as long as you don’t take damage you are doing more…
But you are becoming more squishy at the same time (more damage received), ie. it puts more and more strain on your damage mitigation strategy…
There appears to be a list of attacks and environmental damage that, even though they don’t hurt the player due to them being shielded or having damage immunity from a pylon, they break the necklaces damage bonus effect.