$M$ is a hyperplane; it is the kernel of the linear functional $f : (x_n) \mapsto \sum_{n=1}^\infty \frac{x_n}{2^n}$, which is bounded, as
$$\left|\sum_{n=1}^\infty \frac{x_n}{2^n}\right| \le \sum_{n=1}^\infty \frac{|x_n|}{2^n} \le \sum_{n=1}^\infty \frac{\|x\|}{2^n} = \|x\|. \tag{$\star$}$$
This implies that it is a subspace, and is closed (which I know you already know).
Generally speaking, the metric projection onto the kernel of a bounded linear functional exists if and only if the functional achieves a maximum on the unit sphere. I would like to show this is not true for our particular functional.
First, let us show that $(\star)$ never achieves equality on the unit sphere. If $\|x\| = 1$ is a counterexample, then we would have
$$\sum_{n=1}^\infty \frac{|x_n|}{2^n} = \sum_{n=1}^\infty \frac{\|x\|}{2^n}$$
which occurs when $x_n$ is constantly equal to $\|x\|$, which is impossible, since $\|x\| = 1$, and $x_n \to 0$. That said, we can get arbitrarily close by considering
$$x^m = \sum_{i=1}^m e^i = (\underbrace{1, 1, \ldots, 1}_{m \text{ times}}, 0, 0, \ldots) \in S_X,$$
on which we have
$$f(x^m) = \sum_{n=1}^\infty\frac{x_n}{2^n} = \sum_{n=1}^m\frac{1}{2^n} = 1 - \frac{1}{2^m} \to 1 = \|x^m\|.$$
Thus, $\|f\| = 1$, but $f$ never achieves its supremum on the unit sphere.
Now, let's generalise the problem. Suppose $f \in X^*$ fails to achieve a maximum on $S_X$ and $M = \ker f$. Further, suppose $x \notin M$ and $y \in P_M(x)$ (i.e. the set of nearest points in $M$ to $x$).
Because $f$ is continuous, $M$ is closed, so $d(x, M) > 0$. By dividing through by $d(x, M)$, assume without loss of generality that $d(x, M) = 1$ (implicit here: $d(\alpha x, M) = \alpha d(x, M)$, which is true because $M$ is a subspace). Note that $\|x - y\| = 1$. I claim that $|f|$ achieves a maximum on the sphere at $x - y$, against assumption. Specifically, $|f(x - y)| = |f(x)| = 1$.
Indeed, given $u \in S_X$, let $z=x-\frac{f(x)}{f(u)}u$. Then
$$f(z)=f(x)-f(x)\frac{f(u)}{f(u)}=0\implies z\in M.$$
We then have
$$1 = d(z, M) \le \|x-z\| = \left|\frac{f(x)}{f(u)}\right|\|u\| = \frac{|f(x)|}{|f(u)|}\implies |f(x-y)|=|f(x)|\ge|f(u)|.$$
This implies that $|f|$ achieves a maximum at $x-y$, so $f$ achieves a maximum at $x-y$ or $y-x$. Either way, this is a contradiction; no nearest point to $x$ can exist in $M$.