Create ArcGIS python script to convert files and perform erase function

I am working with a set of 200 cities and each city has four types of ArcGIS polyline shapefiles. The files are organized in sets of three or four with essentially the same file name - only the last number of the file name is different. This distinguishes the type of information that file contains: Ending in 0: Locale boundary file Ending in 1: Blocks file Ending in 2: Plots file Ending in 3: Street medians file Some cities are missing file 2, but it does not matter. I need a script that converts files 0, 1, and 3 into polygons and stores them with their original filenames. The script also needs to erase file 1 from file 0 (within a set) to create a new file, which has the same file name but with the last digit "4." There are 200 folders and I need the script to process them sequentially and store them in newly generated folders having exactly the same architecture. I've attached some sample data. There will be 200 folders like the attached folder.