Row 1 has been worked across the wound-on 8 stitches.
There are 8 live stitches hanging idly off the cable below. Leave those stitches alone for now. (The slip-knot has slid under the last (slipped) stitch — not a problem. It can be pulled out later.)
Here, the first 8 stitches of Row 9 have been worked. You are ready to pick up stitches along the left edge in order to get you to the live stitches on the bottom.
Still Row 9 — at the slip-knot. Stitches have been picked up along the edge (they’re sitting on the Right Needle).
The formerly idle circular needle at the bottom (on the left in photo) has been pulled through (= the stitches have been slid onto the needle from the cable) and you are ready to slide off (and discard) the slip-knot in order to work the 8 live stitches back and forth for a few rows.
The stitches on the Right Needle are left alone and unworked for those rows — so you may have to pull the needle through — to let those idle stitches sit on the cable rather than on the needle — to comfortably work the 8 stitches on the Left Needle.
Row 16 — The tab is complete and you are ready to pick up more stitches along the edge. This will carry you across to the 11 stitches (on the Left Needle) that have been sitting idle for the last few rows. (Here, again, the stitches on the left have been slid onto the needle from their former idle state on the cable.)
You are curving/bending the tab to join up all your stitches. This sets them side by side so you can knit across all stitches for the remainder of the shawl as you can see in the photo below.
Row 17 (worked): The setup is complete with stitch markers in place.
The photo shows only three markers. The pattern has 5 — an additional one at each edge like this:
I work with as few stitch markers as I can get away with (often none). It’s just that it’s easier to write instructions that say “knit to marker” instead of “knit to the last 7 sts, blablabla.”
Incidentally, those are my favourite stitch markers. They are from fripperies & bibelots and were a present from EmmaCo.