Identification of non-standard frame feature and suitability of frame for mid-drive e-bike conversion
The piece you refer to is a kickstand mounting. As to whether it can be utilized in, or get in the way of, a conversion depends on the 'kit' use. Can it be cut off? Yes.

The frame looks like a high mount single pivot style rear suspension - with the shock mounting almost horizontally between the top front point of the swing arm frame and the downtube. This might have chain length issues you would have to be mindful of - the chain 'length' changes depending on the rear axle's position along the arc of suspension travel. A trickier conversion. The bike doesn't look like it has been used a lot chainrings, wheels etc show few signs of wear - though it maybe an older style, older build. a picture of the whole bike would help further.