Yes actually I saw my friend get a suppository and he saw me get one as well.
This was by a nurse at grade school.
I posted the full story elsewhere here.
It’s rather detailed!
The only other time someone watched me get one was my cousin and it was given by my uncle. We had seen each other naked before though, like after a shower and also several times saw each other get a bare ass spanking!
And to answer, yes! This created a lot of sexual arousal, tension and interest!!