Hi RBuys
Remember they want to get rid of state 2 and they need to add the path baa(a + b)*abb from state 1 to state 1 and the path abb(a + b)*baa from state 2 to state 2 that you see as redundant to allow the edge when they get rid of state 2 to generate the same kind of regex as what was available when state 2 still existed and was connected to state 1 through the abb transition edge and baa transition edge as seen on page 5 of tut letter 102.
So on the first diagram of page 5 that path baa(a + b)*abb may seem redundant, but as soon as you get rid of state 2 how will you be able to follow the path baa(a + b)*abb as many times as you want on state 1 before going to the final state?
I don't feel this question is a very good example on how to convert a TG to a REGEX because it is obvious that all possible words consisting of 0(Lambda) or more a’s and/or b’s are accepted thus the REGEX for the the TG is (a + b)* as stated in the 102 answer.