There are three buttons you can use to step through your code. These are the three left-most icons on the Debug toolbar. In sequence, they represent the following actions:
Before you make a selection, take another look at the status of the highlighted code, the cursor position, and the Step Indicator button. In summary: an expression is highlighted, consisting of a getdist function nested within a setq function, and the cursor is positioned at the very beginning of the highlighted block.
After you click the Step Over button, control passes to AutoCAD and you are prompted to specify the width of the path.
After you specify the width, control passes back to Visual LISP. Notice where your cursor is and what the step indicator button shows.
Visual LISP evaluates the entire highlighted expression, then stops at the end of the expression.
Now the first cons function is highlighted, and Visual LISP is stopped right before the function (notice the Step Indicator button).