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It applies several adjustments that improve performance. There's an option to clear out compatdata and shadercache for uninstalled games. Biggest of all for you is it will sync shadercache and compatdata to the same location a game is installed, in your case the SD card.
https://www.youtube.com/watch?v=C9EjXYZUqUs
Are you talking about game updates or shader cache? If its shader cache, then no. Moving shader cache onto the sd card may have performance problems. Shader cache is GPU code and would need to be loaded as fast as you can.
That what CryoUtilities will do:
Storage Manager
* Sync shadercache and compatdata to the same location the game is installed
* Delete shadercache and compatdata for whichever games you select
* Delete the shadercache and compatdata for all uninstalled games with a single click
It's that first bullet point that will do what you are seeking.
I have three Steam Decks. Two 64 GB LCDs (1 Q3 2022 and 1 Q1 2023 upgraded to 1 TB) and one 512 GB OLED (upgraded to 2 TB). Each one has Cryoutilities installed, and each one is going strong.
Your screen going dark has nothing to do with what Cryoutilities does. What you experienced was unrelated.