There are two main cases of light refraction that you might consider in the term "chatoyance" The first is that which is caused by waves in the grain structure like this as seen from the edge of the board:
View attachment 3627733
This is the effect we see in curly or flamed maple.
The other is what we see in interlinked grain where there are side by side rows in which the fibres are at an angle to each other - the first row being like //////////////
and the next adjacent row being \\\\\\\\\\\\\\\
and the next ////////////////
The fist example will show bands of refracted light across the board, while the second will show ribbons running the length of the board. In both cases the effect is that of the light being reflected differently from wood grains going in different directions.
A board showing the wave variety is often less stable than a similar board that doesn't exhibit the wave pattern. Think of the wood as having been longitudinally compressed. The compression has squashed the wood forming the waves in the grain structure. When compression forces are removed the wood will tend to relax and in doing so it will distort from its initial dimensions.
The interlinked kind is more like plywood - the interlinked grains actually can contribute to the strength of the wood.
So the answer to the first question is - it depends.
As to the second question, the most stable cut of wood is the one that has the straightest lines on each surface. As you get closer to the centre of the tree the growth rings are in a tighter radius. So looking a the end grain you will see a lot of curve. That will be less dimensionally stable than something cut from the outer edges of the tree where the circumference is flatter. The worst case is a board that actually crosses the centre of the tree - that one will almost surely kink badly right at the centre.
So as I pointed out earlier, the best wood for a neck is one that really is the most boring to look at. It has closely spaced growth rings running straight and parallel to the top and side surfaces. And the growth rings shown in the end grain are close to flat and parallel to the top and bottom surfaces of the board. Waves in the grain like flamed maple are indicators of uneveness in grain structure and as such take away from the ideal for a neck in terms of stability, strength and rigidity. However, for some the beauty of a well figured piece may be worth the compromise.