I second that it definitely kills Xenia. a pump that was used in a fluke tab bath was dried and not used for about a month, then was used in another tank without rinsing it as I forgot about the fluke tabs, and it subsequently killed all of the xenia in my 24g, causing a MAJOR explosion of nutrients that I'm still fighting.
Fortunately I've never noticed redbugs or AWEF fall off the corals or look stoned after a dip, as I've never seen one, which can be either good or bad, good because I presumably don't have them, bad because I've never seen/experienced them.