Does the supplication: "O Allah, what was between me and You, then forgive it for me; and what was between me and Your creation, then bear it on my behalf" absolve one from wrongdoing (thulm), and what does it mean?

Among the conditions for repentance from an injustice involving people is: restoring the wronged rights to their owners or seeking their forgiveness. The supplication mentioned does not absolve a person of their injustice, because the rights of people must be restored unless it becomes impossible to do so. If it becomes impossible to restore them while the person repents, then Allah Almighty will bear them on his behalf. There is no harm in the supplication mentioned, as it includes seeking forgiveness from Allah and asking Him to bear the rights of people.