This teshuvah from R. Yaakov Epstein discusses the question of a hefsek between birkat eirusin and the kiddushin / eirusin itself. While he doesn't specifically talk about reading the ketubah as a hefsek, I think it is relevant to your question.
Essentially, it boils down to an argument regarding the status of this berachah. Rambam (and others) hold that the berachah is recited by the mesader kiddushin on behalf of the groom over the mitzvah of kiddushin that he is about to perform (birkat hamitzvot). Rosh (and others) hold that it is a more general berachah of praise (birkat hashevach), recited on behalf of everyone present.
His conclusion is:
יש חשש ... בברכת
האירוסין לסוברים שהיא ברכת המצוות ומברך אותה המסדר עבור החתן שיצא
בברכתו, ואם החתן מדבר בין הברכה לקידושין יש בכך הפסק. ואמנם איננו
אומרים לו לברך בשנית לפני מעשה הקידושין שכן ספק ברכות להקל וישנה
דעת הרא"ש שהיא ברכת השבח
There is room to worry with birkat eirusin according to those who hold that it is a birkat hamitzvah and the mesader recites it on behalf of he groom who fulfills his obligation with the brachah of the mesader. Thus, if the groom were to speak between the berachah and the kiddushin there would be a hefsek. However, we would not tell him to repeat the berachah before performing the kiddushin, because of the principle that we are lenient when it comes to doubtful berachot, and there is the opinion of the Rosh that it is a birkat hashevach.
Thus it seems that in your case as well, we would not require that the berachah be repeated, in deference to the view of Rosh.