I would think it would’ve been released, because it would’ve kept the public vigilant against Soviet influence. The mainstream of the Black community in the 1920s did not support Socialism (or Communism) except for fringe figures (although some, like W.E.B. Du Bois, did) and wouldn’t have gone along with such outside manipulations.
Wilson did have an excellent Attorney-General in his second term (and thanks to Wilson’s stroke, likely had a bit of a free hand), that being the legendary A. Mitchell Palmer (of the Palmer Raids). Palmer was the one responsible for recruiting J. Edgar Hoover into the federal government.
McCarthy warned about the infiltration and he was destroyed over it.