Yes, it will damage the cam bearings as they will dissolve. So will the front and rear main bearing grease retainers and dip stick flange that attaches to the oil pan.
Electrolysis will work fine on ferrous metals. Anything made of steel will work.
Electrolysis will damage any non-ferrous like Aluminum, Copper, Zinc and cam bearings.
The little plate that attaches the dip stick to the oil pan will also dissolve including the fuel pump push rod bushing.
The main bearing seal retainers on the front and rear of the block will also be dissolved.
Carefully read all the information contained here about Electroylisis and Evaporust.
Here is a link to a thread I started over on the HAMB regarding rust removal. Please read the whole thread, I tried very hard to explain that the solution is NOT an acid, some people could just not understand that. I hope this helps.
Tom https://www.jalopyjournal.com/forum/threads/rust-removal.1285516/
It would be helpful to know the definition of "electrolysis" as discussed here. The "electrolysis" process I'm familiar with and have used quite often with great success is nothing more than plain water, Arm & Hammer washing soda, and a low voltage power supply and does a terrific job of removing iron oxide (rust) from iron and steel with virtually no harm to the part being cleaned.
I have never heard that this process would dissolve the soft metal on cam bearings and other soft metals, but then there's a lot I don't know. Also, this electrolysis rust removal process I refer to works very slowly and only attacks the iron oxide on a "line of sight" basis.
Is it possible we might talking about two different types of "electrolysis" systems? Perhaps I missed something so I'm certainly open to learn more.
I have found that electrolysis to be messy and inefficient because it works "line-of-sight" only. Never fear however, as it seems that someone has finally cracked the formula for "Evapo-Rust" and it can now be formulated at home very cheaply. See this thread on the H.A.M.B. : https://www.jalopyjournal.com/forum/threads/rust-removal-tools-or-parts.1322229/. An outfit called "Beyond Ballistics" developed it and has quite a good video explaining it, The only problem is that I had a very difficult time understanding the guy;s thick European accent, but I got the gist of it. They did some very comprehensive comparative testing, and it seems they got it. I have always considered "Evapo-Rust" to be the best rust remover there is, except for the price.