On a FWD car or a 4WD with independent front suspension, the "length" of the CV axle changes as the suspension cycles - to accommodate this change in length, the inner CV joint will usually allow what is known as "plunge" - the axle & inner race of the joint, moves in & out, relative to the outer race.
Without the circlip it is possible for the axle to remain fully "in" in the inner CV, and if the suspension droops at that point, the splines that drive the hub will sometimes slip back far enough that they are damaged.
I'm inclined to say it's quite rare for FWD cars to have this clip, in fact I've never seen one with it - the wheel end of a FWD car CV axle usually has a nut to hold the CV axle in place - the CV axle on most FWD vehicles is load bearing, it is an integral part of the wheel hub/bearing assembly, if it's removed the wheel cannot be refitted, some 4WDs are built this way, for example the third gen GVs, but first gen & second gens have full float front hubs where the CV axle's only job is to transfer power, you can remove the CV axles and still have a useable 2WD vehicle, in fact, that's how the 2WD first & second gens are built. - leave the hubs & front suspension and just remove the bits that drive them.