This is a method of RNG Pathing that uses a variable that switches randomly between the numbers 1 and 2. When the variable has the value of 1, the sprite will turn right 45 degrees, and when the variable has the value of 2, the sprite will turn left 45 degrees, making octagon shapes, hence the name "octagon pathing." The sprite that is tracing also is moving 10 steps per frame at an average rate of 30 frames per second. If you turn on turbo mode (click the flag while holding the shift key), you can see that eventually, the path will cover the entire screen.
