The question of the definition of "friction modified" has come up before. The label doesn't say "modifier" it says modified. So, not the same as friction modifier for a clutch type limited slip differential, which is modifying the slippage between clutch discs, not synchro rings. Besides that "modified" just means different. It doesn't really say which way or how the modification is happening.
But, besides all that, and what "friction modified" actually means it just boils down to the fact that people have tried it and compared it to the "normal" transmission oils and it works a lot better in removing the poor synchro perfromance. Redline MT90, Synchromesh, and Synchromesh Friction-modified all work very well. Also, Swepco 201 blended with ATF works very well also. Better than Valvoline 80W-90 manual transmission fluid.
I don't think that anyone really knows exactly why one works better than another. It's magic.