That is the puppet's track item bar which represents how long the puppet shows up in the scene. It defaults to five minutes long, but can be shortened or lengthened as you showed. The reason it doesn't start out being zero and only growing when you record is that we don't know in advance if you're actually going to record anything (e.g. it could be a background puppet).
But yeah, we are considering other designs to make this more intuitive.
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