Find and replace string from file which contains variable and path - SH

Shell Programming and Scripting
1

e.g.
/home/$USER/.config replace it with "" (empty)
Is this possible?
I think you should play a bit with sharps ## and sed:b:

2

Please post clearly what input you have and what output you expect, while using code tags. Recommending the people that should help you to play around with # and sed is maybe not very helpful. Did you trying to play with them so far?

3

File1.txt contains:
/home/$USER/Pictures
/home/$USER/Music

Find the string /home/$USER/Music and replace it with /home/$USER/Music/hello.people.mp3