seeds Transplanting root bound seedlings?

Many years ago I had been taught that when you're transplanting rootbound plants, that you should take a knife or a fingernail and slice the roots top to bottom so they will grow out, and not continue around and strangle themselves.
Is that a myth or a bad practice?  What's the proper method to replanting them?
Thanks. 
 
Dont know about  using a knife..but i do pull the roots apart on root bound plants before transplanting.
 
Yeah same have always tried to get as much untangled as I could.
 
ALSO - Something I have been doing past few years was just taking a bucket with lukeish warm water and soak the roots for a couple mins till the media comes off, afterwards most of the roots are untangled or easy to do so as well.
 
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