White cloth hanging from a car window: what does this informal road sign mean?

There are several reasons why a driver might use this visual aid. The most frequent are:

Mechanical failure: when the  vehicle has stopped on the shoulder due to a technical problem and the driver wants to signal their presence to avoid collisions or request assistance.
Medical emergency: the driver is trying to warn others that they are transporting a person who needs urgent attention.
Caravans and group trips: in funeral processions, religious pilgrimages, or group trips, the white cloth serves to identify  vehicles that are part of the same group.
Lack of fuel: in some cases, it is  used to indicate that the car has run out of gasoline or diesel.

Does it grant right of way?