I did some research on this item. It’s not some new thing for the COVID pandemic. It has been around for over 10 years and was invented as a response to previous flu epidemics.
Obviously no Catholic church will use this to distribute consecrated hosts. However, some Catholic churches have used it to allow Mass attendees to place an unconsecrated host onto a plate as they enter, without needing to stick their fingers into a bowl of unconsecrated hosts. The practice of putting one host onto a plate as you enter is done at a lot of smaller churches where they don’t want to consecrate more hosts than are needed. If your church uses this, then as you enter church, you just pick up the machine and squeeze one unconsecrated host onto the plate, which is then taken up to the altar at presentation of the gifts. Since the unconsecrated hosts are bread, it’s not insulting to use the machine to dispense them.
Some Protestant churches do use it to distribute communion, although some ministers have made Internet posts objecting to it on the grounds that it’s disrespectful or that communion in their opinion doesn’t transmit disease.