Chaos theory in general states that for some deterministic systems, small changes in the initial conditions can lead to a wildly different deterministic outcome.
A closer metaphor than the butterfly metaphor is a car on a wet road.
Think of driving your car on a wet road. This is a completely deterministic system, there is nothing we don't know about how cars handle on wet roads. When you take that one corner too fast however, your car loses traction on the road, whether your car spins out or just fish tails for a bit before straightening out depends a great deal on the speed and angle that you entered the corner at. If you don't know the speed or angle that you entered the corner accurately, you don't know if you can bring the car back under control again or not.
I don't think anybody in the field of Quantum Mechanics doubts that it is possible for Quantum effects to be entirely deterministic. But it may be so sensitive to small changes in initial conditions (which may be as far back as the birth of the universe), that even if we knew the exact deterministic equations to solve for Quantum Mechanical systems, they would never make an accurate prediction.