How does Tessent ESOE Enhance Stop On Error works (not on pattern generation part)?

Can anyone help me to understand how does the Tessent ESOE work? To diagnose a failure on silicon, I understand that each data collection procedure consists of the following three patterns:

1. Initialize diagnostic pattern - what to be initialized?
2. Execute diagnostic pattern - "execute and get failing cycles" what does the "cycle" mean here?
3. Increment diagnostic pattern - what to be incremented? move on to next address? move on to next memory?

Thanks in advanced for those who provide answers.