Does the separation of Church and state help in maintaining freedom of religion?

Answer 1

Today's interpretation of "separation of church and state" implies that religion of any kind cannot be involved in any governmental entity, ceremony, or action. This implies that one's religion must be limited in the life of an individual. In that sense, "freedom of religion" - that is to say, the freedom to exercise one's religion over the lives of others - is hindered.

Answer 2

In the past, a nation or state often nominated the religion that its citizens must follow, and so there was no real freedom of religion. Later, the relationship between state and church was loosened in most countries, but there was still overt or implicit pressure to conform with the majority.
As long as there is not full and transparent separation between Church and state, there will always be the risk that the relationship will be abused for the benefit of Church or state. And a close relationship between Church and state does not always work to the benefit of the Church, because the state has the power to interfere in Church appointments, promotions and even doctrine.

Freedom of religion is almost guaranteed when the state recognises no one religion and accepts the right of its citizens to support the religion of their choice, or none at all.