They say "On each step...[yadda yadda] we have a completely observed state, the wave function has collapsed."
So they're trying justify calling a "state" a "collapse". That's a bad metaphor to start with, but then they try to use that metaphor to justify calling lots of other stuff "waves" that are unrelated to waves, and continue to shove that square peg thru a round hole. Hilarious.
It is even funnier when you consider that the entire algorithm is deterministic, assuming a fixed seed for a PRNG.
I know. It's hard to tell if they're trying to be jokingly "cringe" about all the "wave" stuff, or simply that non-conversant about wave theory and QM.