Eric has the correct answer to what it is/does, as to why it was used in some and not others I have no clue. But many 700R4 owners wish it worked as it was suppose to, was used in most '87-'93 models with aux. valve bodies.
I could not begin to count the number of overheated/roasted/burnt to the ground units I've seen with purple/black converters and melted "Everything".
Trucks being the majority, operating under heavy loads(towing) and with converter unlocked will force converter to overheat, sometimes creating a fire after pump seal gives out spraying fluid onto exhaust. Nice idea but never worked quite well.
Kevin.