It looks equivalent to the command restoredefaultpath(), erasing any modifications you've made to the MATLAB path. If you do this, and you are trying to run code (written by you) not located in your current directory, MATLAB may not be able to find it, unless there are later lines of code which build the appropriate path.
If you are deploying this code to somebody else's machine, doing this can be a way to ensure that any modifications they've made to their MATLAB path will be erased. This can be good because maybe they have user-written code on their path that will have precedence that you don't want. On the other hand, you will break their preferred path. When they want to resume work with their own code, they will have to rebuild their preferred path in some way. This could be a pain for them, if they don't have it saved, or if they don't have a startup.m file which generates it automatically.
