In picture 1, the wires on normally closed auxiliary contacts on the reverse contactor (first terminals on the second contactor) are being jumped together .
The system is interlocked and the control system requires that both the normally open and normally closed auxiliary contacts function correctly for both contactors to function.
If you power down the lathe, you can test the normally closed contacts with an ohm meter. There should be very low resistance across the normally closed contacts at rest.
Conversely, the normally open contacts should read open in the same test at rest.