Here you are iterating over the original list. On the first iteration, you removed the 0th index element i.e. a. Now, your list is as: ['b','c']. On the second iteration your for loop will access the value at index 1 but your index 1 has value c. So the c is removed. Hence resultant list will be ['b'].
In order to make it behave expectedly, iterate over the copy of the list, and remove the item from original list. For example:
x = ['a','b','c']
for m in list(x): # <-- Here 'list(x)' will create the copy of list 'x'
# for will iterate over the copy
x.remove(m)
# updated value of 'x' will be: []
Note: If it is not for demo purpose and you are using this code for emptying the list, efficient way of emptying the list will be:
del x[:]