To explore the impact of surface viscosity on coexisting fluid domains in biomembranes we consider two-phase fluid deformable surfaces as model systems for biomembranes. Such surfaces are modelled by incompressible surface Navier-Stokes-Cahn-Hilliard-like equations with bending forces. We derive this model using the Lagrange-d'Alembert principle considering various dissipation mechanisms. The highly nonlinear model is solved numerically to explore the tight interplay between surface evolution, surface phase composition, surface curvature and surface hydrodynamics. It is demonstrated that hydrodynamics can enhance bulging and furrow formation, which both can further develop to pinch-offs. The numerical approach builds on a Taylor-Hood element for the surface Navier-Stokes part, a semi-implicit approach for the Cahn-Hilliard part, higher-order surface parametrizations, appropriate approximations of the geometric quantities, and mesh redistribution. We demonstrate convergence properties that are known to be optimal for simplified subproblems.