At that price, the switch probably isn't mechanical at all, but electronic. The same kind of switch you'd see in a mixing console. In theory, they can't enable both paths at once. However, being solid-state switches they are prone to failure so anything can happen. In my experience failure usually means one or more of the connected USB devices won't work at all, or it requires multiple retries to get them to wake up.
I'm using a KVM switch here so that I have easy access to my old computer. Even after 6 months I'm still remembering old files that haven't been transferred to the new machine. It works 95% of the time; the other 5% my USB mouse and/or keyboard becomes unresponsive and I have to hit the switch again or crawl behind the desk and unplug and reconnect all the USB cables.
However, there's not been any damage to anything. Even if there was, it'd most likely be the USB port itself and not the device. And USB ports are pretty resilient. Most can handle a dead short without damage. The most likely scenario is that Windows thinks nothing's connected to the port and powers it off, so make sure that feature has been disabled (which you've probably already done, given that you're using a USB audio interface).
All in all, I think it's a reasonable risk.