the gun still works, indeed it seems to have become lethal with one or two shots even though its DPS hasn't changed. Also enemies behave as though you have "put your weapon away" so it must be invisible to them also.
there are other weapon mods which give unexpected results but loading and 'trying again' usually sets them strait. The most amusing one was putting the extended tube on the dinner bell which loaded all eighty shotgun slugs I had into it. I didn't like that so I loaded and mod my dinner bell again this time only eight shots in the tube. Much better.
