I have never understood this story either. I use brass, gold, silver, steel, copper, and iron in my forge, and it welds just fine. I think it is one of those urban legends that everyone tells, but no one really ever experienced it...sort of like Spanish Fly.
Someone just the other day posted on a thread that some smiths would punk a friend's forge by tossing in a piece of brass or copper when no one was looking,..... and making their friend's forge never able to weld again. Besides being a ludicrous story, if it was true, they would be asking for a hammer up the side of the head for putting someone out of business.....some friend they would be.
Copper has been used by blacksmiths to braze together iron and steel for centuries ( sometimes called a penny weld), so I don't see why a few stray atoms would stop any welding of damascus. Metallurgically, it may even help the weld.