Interference check
Shows where parts run into each other — that is, occupy the same volume.

It is switched on by a checkbox; the check runs on the assembly in 3D and computes the volume of the common part rather than “do the bounding boxes touch”.
What counts as interference
Not every intersection is a mistake. A threaded joint, an interference fit and a press fit look like intersections in the model and indeed are. What matters is the amount: hundredths of a millimetre are intent, a five-millimetre overlap is an assembly error.
When to check
Before release and after every large change. Especially after editing joints: a part that moved a couple of millimetres is invisible to the eye, but the volume of the common part gives it away.