There are several articles (i had gone through earlier , sorry have to search through) which limits the usage of this aspect (even in carrbon steel)
Despite all the problems the arc gouging will
a) Increase the carbon percentage in the affected area doe to impregnation. This is normally not good for the stressed components
b) The thermal shock and the stress on the HEZ
In fact if I remember - the relevant procedures forbid the arc gouging unless you are going to do any further thermal treatment that is going to disperse the carbon back
these may be grinding the area and welding
machining
Heat treatment etc,
We have strictly forbidden our area gouging on finished surfaces - and only wher machining allowances are there (excessive projection or components to be cut and removed (stuck up) are cut/gouged by arc.
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As you can see from the articles liked below, it seems that there are no general consense about carbon arc gauging on SS316L. The process cause a increase in the carbon content of the material but it could be removed by grindind and correct execution of the gauging. Someone prefer to avoid this process as you can see below.
To make a resume: It can be done but with great care..
Carbon arc gouging is not recommended for cutting of stainless steels under any circumstances. All spatter is to be removed and the surface of the parent metal dressed smooth.