I don't know. There are people that love DE, they use it in their gardens or ingest it themselves, let alone with their chickens. There are people that avoid it. I'm one of the avoiders. I've never used it and I've never had a problem with mites, lice, tapeworms, or roundworms, the things it is supposed to prevent. That doesn't prove it's not effective just like someone using it and not having problems doesn't prove it is. You can't prove a negative.
I've read several posts on this forum where some people say it has helped as a treatment for an actual infection. Others say it hasn't helped at all. I don't know what other factors may be involved. A lot of the time the devil is in the details.
When the topic first came up on here I tried to do some research. How does it work and what are the risks? Like practically everything else on the internet it's hard to get reliable information. You get all kinds of different stories and just don't know if you can trust the source or not. It's supposed to help in two ways. It is basically really tiny really sharp knives. When bugs crawl on it they slice themselves to ribbons. Also, it absorbs moisture. So those bugs dehydrate and die. And by absorbing moisture in grain storage it helps prevent mold. Obviously it can only absorb so much moisture but that can be a help. Many sources say that once it gets wet those tiny knives are no longer effective. I don't know how true that is. A lot I don't know.
What convinced me to avoid it was when I found the handling requirements to use it commercially. People using food grade DE are required to use breathing protection. Don't let that stuff in your lungs. I don't wear a mask when taking care of my chickens and I'm not putting a mask on them. Since I'm not sure how effective it actually is anyway, there are other ways to deal with these issues if they ever show up, and they haven't shown up I don't see a benefit in using it.