To understand what it does, these three do the same thing
Map[If[# == 1, Unevaluated@Sequence[], #] &, {1, 2, 3}]; If[# == 1, Unevaluated@Sequence[], #] & /@ {1, 2, 3}; If[# == 1, Sequence @@ {}, #] & /@ {1, 2, 3}; If[# == 1, ## &[], #] & /@ {1, 2, 3};
All above give {2,3}. So the effect of ## &[] is to remove the entry completely (so we do not end up with a Null or empty slot in there).