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johnkorz (4) [Avatar] Offline
I edited this question because I feel like it was poorly worded and may be unnecessarily confusing other readers. After reading on I feel like I have a better understanding of what's going on. However, I'm still a bit confused.

I think the term registering identifiers means, in phase one of the code execution, declared variables and functions are written to the newly created lexical environment.

Phase two is described in the three steps as well as Figure 5.14 and is said to be the actual execution of the code.

So are the three steps and figure 5.14 only describing phase 2 or both phase 1 and 2? Step 2 says:
For each discovered function declaration, a new function is created and bound to an identifier in the environment with the function's name.

Also Figure 1.14 has an arrow pointing down to it before "Function environment?" implying there's a step before that, which I interpreted as being phase 1. Directly contradicting this, at the end of this section the book says:
During the actual program execution, function declarations are skipped, ...