Yes. The system was designed to scan a scene and find reflections from hidden optics (all things like sights, optical targeting systems, cameras etc retroreflect so can be 'found' by laser) and then damage them. A side effect was that you could find hidden snipers / tanks etc and do what you will with them.
I'm not sure if the system went into service or not because the Geneva Convention bans any laser system designed to damage eyesight on purpose or by likely side effect. You can bomb the shit out of someone, cut them in two with 40mm, drop in a Hellfire on them etc, but some interfering European will slap your wrist if you damage someones eyesight.
<edit> re the effect. It was capable of burning the coating on optics, or in extreme cases, melting parts of the optics, and of course if the optics had a sensor of some sort on the back, destroying or damaging that.
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