> It’s a WireGuard tunnel being sent inside another WireGuard tunnel
Edit: replaced with a better diagram (and again, now based on example in [0]):
▼ ▼ ▼ ▼
YOU->NL1 tunnel SE4->NL1 tunnel PLAIN/TLS
YOU ────────────────────► SE4 ───────────────────► NL1 ───────────────► CATPICS.COM
On the wire: YOU->SE4 traffic SE4->NL1 traffic NL1->CATPICS.COM traffic
┌────────────────┐ ┌────────────────┐ ┌──────┐
Inside: │YOU->NL1 traffic│ │YOU->NL1 traffic│ │ DATA │
└────────────────┘ └────────────────┘ └──────┘
[0] https://mullvad.net/en/help/wireguard-and-mullvad-vpn/