I presume it didn't alter the firing ability of the weapon to which it was attached.
From the photo images, the way it was mounted might have altered the muzzle flash a bit – venting more to the sides and top, with less going forward. Doubt that would have altered the path of the first bullet(s), but it might have actually stabilized the gun a bit more, as the PPSh (which it appears to be mounted to) did have a tendancy towards muzzle climb (as almost any SMG did).
It looks like it's the bullet that does the wire cutting … cause havoc with the bullet causing the barrel to explode or bullet in a random direction as possible friendly fire.
Yes clearly the intent is to bring the wire directly in front of the muzzle of the gun so that the bullet cuts the wire. The bullet(s) that did the cutting would probably indeed go off in random directions, but all would be in a frontal arc, where presumably there were no friendlies to hit.
I don't see any likelyhood of bursting a barrel, as the device is mounted to the flash deflector on the barrel shroud, not to the barrel itself. There is already an inch or so of clear air between the device and the actual muzzle of the barrel.
Bit noisier than a conventional wire cutter too. "Silently" seems odd. Add to that the muzzle flash. Wonder why the idea did not develop further…
If I were charging across a field of fire assaulting an enemy position, and came upon a wire entanglement, I don't think I'd be too concerned about making noise. The reference to "silent" was that, IF silence was necessary (ie: on a night patrol perhaps) you could use the device to brace a wire upwards to crawl under it. That would indeed be reasonably silent (providing the enemy didn't hang noisemakers on the wire).
Probably not developed or deployed too much further because large-scale positional warfare with troops charging at entrenched positions protected by wire entanglements are just not very common these days.
At least that would be my reading of it. Interesting and simple approach. Never saw it before.
-Mark
(aka: Mk 1)