This is some kind of weird notation. I know how $\;\hat{a}\;$ was used in the Principia Mathematica (as an equivalent of $\;\eta$-reduction in lambda calculus), but what does it do here $\;\hat{a}(a=a.\phi)\;$?
Why is $\;\hat{a}\phi\;$ equivalent to a universal set, and why does a $\;\Lambda\;$ mean an empty set (if V states for the universal set and according to Quine's "... is either V or $\Lambda$") ?
See The Notation in Principia Mathematica.
Let $\phi$ a statement that is either True or False.
$\hat {\alpha}(\alpha = \alpha)$ is simply $\{ \alpha \mid \alpha = \alpha \}$, i.e. the class such that ...
But $\alpha=\alpha$ is always true; thus, $\{ \alpha \mid \alpha = \alpha \} = \text V$, i.e. the "universe".
Now, the formule $(\alpha = \alpha) \land \phi$ has the truth value of $\phi$, and thus $\{ \alpha \mid \alpha = \alpha \land \phi \}$ is equal to $\text V$ or $\emptyset$ ($\Lambda$) according to the truth value of $\phi$.