i was also confused. this introductory post by the creators of Codemode is much easier to follow: https://blog.cloudflare.com/code-mode/
Cloudflare Blog actually makes a good job explaining it at the very top, also in one sentence: "Convert the MCP tools into a TypeScript API, and then ask an LLM to write code that calls that API.". The rest of the blog post could probably be skipped :)