The filter was added as part of a TSB if the vehicle was taken in for service.
The first couple years of V10/4R100 combo didn't have an integral transmission cooler built into the radiator. This could result in over temperature if operated in the right conditions, usually slow speed, stop and go, with high outside temperatures.
The filter didn't do anything for heat, but may have trapped anything that worked it way loose, debris, etc.
The real cure is to mitigate the cooling, the band-aid is to monitor the temperature, flush the tranny with full synthetic, add a good remote filter, rebuild the integral pressure bypass valve, or remove it.
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