Papi/Manny said:
^Wrong. That text is there so you can't use pupate and evo into metapod and then evolve into butterfree the very same turn (assuming its not t1 and the 1 turn down condition has been met).
Wrong. You can do exactly that. Poke-Powers and Trainers are allowed to break the rules. If you can legally activate the Power or play the Trainer, you do what it says, even if the effect breaks the normal rules.
The text "This counts as evolving that Pokemon" means that the result of that Power/Trainer is counted as your once-per-turn evolution
from your hand for that Pokemon. So after using Pupate to evolve Caterpie to Metapod, you can't then play a Butterfree from your hand to evolve it again. But you can get to Butterfree using Emerge on the same turn.
You can even do this on the first turn of the game (because it's perfectly legal to use Poke-Powers on either player's first turn).
Papi/Manny said:
That text is there so you know to remove all special conditions and other effects.
That makes no sense. You can't remove effects unless the Pokemon actually evolves.