Yes it does and eats seals, floats, needles and seats too. Many fuel pumps are also not rated for e-85.
Ideally a street engine built for E-85 should be running about 12.5:1-13:1 comp ratio and have a fuel system set up just for E-85 with an e-85 specific carb and fuel lines and a fuel pump that are rated for alcohol. A lot of SS braided line isn't even rated for alky. A ss tank or fuel cell would be a good idea too. Also, you never want to let alky sit for long periods of time as it's way more corrosive than gas. Fuel should be drained if it's going to sit for more than a couple of weeks.
On the other hand, it's a way cheap way to get 105 octane fuel and a tremendous amount of power can be made on it, even in boosted applications. It burns cooler and is easier on parts, but you'll use a lot more of it (about 33% more).
My apologies to the original poster for getting off topic.