In an exothermic reaction, does an increase in temperature favor the formation of products?
No As heat is one of the products an increase in temperature ( a measure of the average kinetic energy or heat of the molecules) an increase in temperature will drive the reaction to the reactants.
A reaction will always move in the direction that will relieve the stress on the reaction system. Piling up extra products such as heat will create stress on the reaction system. The stress created by having extra products will drive the reaction back toward the reactants to establish the equilibrium of the reaction system.
A decrease in heat ( or temperature) will drive the reaction system toward the products. The system will become unbalanced because of the decrease in the products. The reaction system will regain equilibrium by causing the reactants to combine, become products, moving the reaction system to the products.