The purpose of this play is to show the timing for the back of the stack (#7) to cut break side when the throw is being made to the center handler (#2).
When #7 notices the thrower (#1) looking to reset to #2, #7 should begin their cut close to the the stack on the break side while leaving enough space to avoid a pick call.
As #2 receives the disc, #7 should already be beginning to flair out towards the sideline
This step shows the cut towards the sideline. By being closer to the stack, it makes it more difficult for the defender to get around the cutter as compared to cutting out towards the sideline and in towards the stack.
#2 then has a better option for them to break their mark for an around throw, or inside break throw.