What does this thingy in the interface do?
That’s the Constraints construct, appearing in the Design tab, where you specify how a nested element will position itself to its container, both vertically and horizontally, WHEN the container is resized.
In your pic, the element has Center specified as both the vertical and horizontal constraint. This means that when the container is resized, Penpot will move the associated element so that it is proportionally in the same spot relative to before the container resizing.
DISCLAIMER: I am new to Penpot and hope that the community corrects me for any inaccuracies.
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You’re a wonderful and beautiful human being.
Thank you.