This is a CodeBreaker code for SA1 US 1.005 that disables all cutscenes. It works exactly the same way as the “Skip All Cutscenes” code in SADX Mod Manager.
010496B4 0900
Cutscenes are removed by nopping the function call that starts the cutscene code, which makes the game assume the cutscene has finished playing. The address of the call is 0x8C0496B4.
There are a couple of small glitches when this code is used. For example at the start of Sonic’s story you can see Sonic in Station Square before the screen fades out and the fight with Chaos starts. This is how it’s actually programmed – the game loads Sonic into Station Square before initializing the cutscene. You can see it briefly when you start Sonic’s story without the code. A similar glitch happens in Station Square in Knuckles’ story.
There are some other potential applications for this code. For example, a conditional code could be made to activate cutscene skip when a certain button combination is pressed, and restore original behavior when it isn’t pressed. That way you could skip individual cutscenes by holding a button when the cutscene is about to play. It could also be made into a simple toggle. Of course it’s not as straightforward as simply pressing a button during the cutscene to skip it, but it’s still pretty good.