Complex sentence: The appearance of this weird device inside a bomber stream would (and indeed did) have a distracting and disruptive effect on the bomber pilots; and Vesco alleges that the devices were also intended to have an "offensive" capability.
Split into simpler sentences: The appearance of this weird device inside a bomber stream would (and indeed did) have a distracting and disruptive effect on the bomber pilots. Also, Vesco alleges that the devices were also intended to have an "offensive" capability.