Should the ScrumMaster be able to understand the technical details of the work of the team? Would this help them be more effective? Or might it hinder them?

Nope. A Scrum Master can benefit from some level of comprehension of the matter at hand, to better understand team discussion. But only to help facilitate and coach. Having too much technical knowledge may not be a problem, but offers temptations that are hard to resist. Temptations to not just coach and facilitate, but influence and steer. Potentially leading to a less self-organized team and less learning.

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