I've seen it used often for some compounds adjectives like well-known or chocolate-covered from that page, but never as a blanket rule across all compound adjectives. Most hyphenation rules they listed have exceptions anyway, so I'd argue that more-literal isn't a necessarily hyphenated adjective.

Either way, the OP is correct enough that there's no reasonable way to misinterpret it due to "the" appearing before the adjectives. "The more translations" (omitting the "literal") doesn't make sense, "More translations" would be ambiguous.