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Yes.

I think it would undermine them; the German middle class was voting NSDAP precisely out of fear for the Communists, at least in part. Them openly endorsing the SDP would make the NSDAP even more palatable.

Presuming events still play out the same into the 1930s, if the Anglo-French still reject a Soviet alliance in favor it's more likely the USSR enters the Axis without Stalin's paranoia.