What does “Auto-Hide Bad Photos” do?
It hides photos measured as blurry or too dark — it is about picture quality, never about content, and it hides rather than deletes.
Every photo is measured for blur and brightness when it is processed. Auto-Hide Bad Photos on the Moderation tab hides, in one pass, every public photo that came out blurry or too dark. You are told how many it hid.
It is a tidying tool, not a safety tool. It never looks at what a photo depicts, and it will happily hide a perfectly good candlelit shot. It also never deletes: everything it hides can be unhidden one at a time from the Content tab.
A sensible time to run it is the morning after, before you download the archive or generate the highlight reel. To hide only the photos you have ticked in the queue, use Hide selected instead — see How do I approve or hide several photos at once?. The chips Blurry and Dark on a queue tile are the same measurements this tool uses.