Rich,
anything that keeps the heat in will make the exhaust exiting hotter.
(Obviously) On a metal prop I doubt it would be a problem unless you run the
exhaust very close to the prop. Various composite props you better ask the
manufacturer, it is a concern. You can also run the exit into a short annulus
and draw air in around the exhaust to help cool it quickly. Like a really
short augmenter. You would need to test the heat, but I haven't heard of
anyone having a big problem with this and wraps and ceramic coatings have been
around for 20 years.
Bill