One common theory is it's being used to do close-up inspections of other countries' satellites. Bonus points if you can attach a magnetic limpet mine to them for future usage.
(To be clear, I'd imagine they're only doing the inspection thing right now, but I do suspect they're at least tinkering with on-orbit capture, refueling, disabling etc. with an arm.)
Sure, but if You are lucky or smart enough, to use it close enough.
For example Soviet satellite-interceptors spent few years and made few attempts (each time with bigger explosive), before achieve enough cloud density .