I not only award partial credit when grading, but I actively encourage the students to "dispute" it and I guarantee that the grade won't be decreased after review. I've been applying this system for 8 years.
Teaching doesn't end when the exam starts, and the exam is not only a tool for sorting students as either failing or passing. If the student fails, they will retake the exam, and they have to know how bad they did. A mark of 15% is different from a mark of 50% even though both result in the student failing the exam. Some students think they know the subject better than they really do. A very low mark tells them otherwise, and partial grading allows me to convey meaning within the not-pass range.
Partial credit also allows me to distinguish between minor errors and fundamental misunderstandings of core concepts. For instance, a student may receive a better grade for a full page of work with minor mistakes than for page where a single line overlooks a crucial topic covered extensively in class. As a professor, it's important that the student knows which topics are crucial (well, I talk about that repeatedly during the course, but they put more attention after they failed the exam, and they put even more attention when they are trying to plea)
In practice, many students will neither dispute the grade nor request clarifications. Those who do, usually request clarifications without disputing the grade. There are few cases where a student actively attempts to improve their grade, or even convert a fail to a pass.
Very few students require an itemized detail of their grade (as in how many points were deducted by each mistake). If they ask for it, I'll deliver. Usually they stop me midway "Ok, I get it". If they insist that the grade is not fair, it's always possible to ask another professor for an opinion (which, in my experience, is hardly even needed)
If they honestly have no clue about why the mark was so low, or they know they did poorly and they're just trying to game the system, the answer is straighforward: "it was a crucial mistake, we talked a lot about that in the lecture of <date>, see exercise of the book." and the "dispute" doesn't take long.
If I cannot provide an explanation, or they present a convincing argument, then it's clear that it was my mistake in one way or another.