This visual execution traces Terraform's dynamic block syntax. Terraform starts parsing the resource and finds a dynamic block named ingress. It evaluates the for_each expression, which is a list of ingress rules. For each item in the list, Terraform generates one nested ingress block using the content block, substituting values from the current item. After processing all items, Terraform merges the generated blocks into the resource and applies the plan, creating the security group with multiple ingress rules. Variables like var.ingress_rules remain constant, while ingress.value changes per iteration. Key points include how dynamic blocks loop over collections to create multiple nested blocks, and that empty collections produce no nested blocks. The execution table shows each step clearly, helping beginners understand the flow and state changes.