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filler/cut is inserted between normal pad cells.
The main purpose is just as pad-ring wire routing.
The padring is often include jtag wires, esd wires,
NVDD/QVDD wires ...
They are necessory for design and helpful for LVS.
Io fillers are required when there is two different adjacent IO cells are present.
Suppose long skinny IO cell next to fat Io cell.
And also when IO cell need to work with different voltage from core voltage to support the interaction with other chip u need to use transition I/O (filler cell)
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