The goal is to show that $\overline S$ is not path connected, where $S=\{x\times \sin(\frac{1}{x}):x\in(0,1]\}$.
Proof. Suppose there is path $f:[a,c]\to\overline S$ beginning at the origin and ending at a point of $S$. The set of those $t$ for which $f(t)\in0\times[-1,1]$ is closed, so it has a largest element $b$. Then $f:[b,c]\to\overline S$ is a path that maps $b$ into the vertical interval $0\times [-1,1]$ and maps the other points of $[b,c]$ to points of $S$. Replace $[b,c]$ by $[0,1]$ for convenience; let $f(t)=(x(t),y(t)).$
Then $x(0)=0,$ while $x(t)>0$ and $y(t)=\sin(1/x(t))$ for $t>0$.
We show there is a sequence of points $t_n\to0$ such that $y(t_n)=(-1)^n.$ Then the sequence $y(t_n)$ diverges, contradicting the continuity of $f.$
To find $t_n$ we proceed as follows: Given $n,$ choose $u$ with $0<u<x(1/n)$ such that $\sin(1/u)=(-1)^n$. Then use the intermediate value theorem to find $t_n$ with $0<t_n<1/n$ such that $x(t_n)=u.$
I don't understand how this function $f(t)=(x(t),y(t))$ is defined. $f(0)=(x(0),y(0))=(0,?)$
About the sequence of points $t_n$, I don't understand the process of construction.
Given $n\in\mathbb N,$ let $u\in(0,x/n)\dots$ Is $x$ is a function right?
Using IVT, why the interval for $t_n$ is $(0,1/n)$?
This answer comes in three short sections that provide the details allowing one to unravel the 'mysteries' behind Munkres proof.
Starting alongside of Munkres, we have a continuous function
$\tag 1 f:[a,c] \to \mathbb R \times \mathbb R \text{ such that } f(a) = (0,0) \text{ and } f(c) = s_0 \text{ with } s_0 \in S$
Munkres argues that there exists a unique number $b$ such that $a \lt b \lt c$ and $f(b) \in \{0\} \times [-1, 1]$ but $f$ applied to the interval $(b,c]$ lies inside of $S$. Let the $y\text{-coordinate}$ of $f(b)$ be denoted by $b_2$.
So we can restrict $f$ to $[b, c]$ and $f(b) = (0, b_2)$ and $f(c) = s_0$. A reparameterization can be found, so finally we have (using $f$ again):
$\tag 2 f:[0,1] \to \mathbb R \times \mathbb R \text{ such that } f(0) = (0,b_2) \text{ & } f(1) = s_0 \text{ with } s_0 \in S \text{ & } f(0,1] \subset S$
Now Munkres notes that the function $f$ in (2) can be written as $f(t) = (x(t), y(t))$.
Question: Is there a second reparameterization where $x(t) = t$? If yes, does this mean that we have a real valued continuous function
$\quad g: [0, +\infty) \to \mathbb R \text{ such that } g(x) = \sin(\frac{1}{x}) \text{ for } x \gt 0?$
The Munkres analysis can be compared with facts known about such functions $g$, defined by specifying the value $g$ takes at $x = 0$. See
$\quad$ Show $f(x)=\sin\frac1x$ is discontinuous on $\Bbb R$ using open balls
Any function $f: [0,1] \to \mathbb R \times \mathbb R$ can be written in the form $f(t) = (x(t), y(t))$. If $f$ is continuous then both $\pi_x \circ f$ and $\pi_y \circ f$ are continuous, where $\pi_x$ and $\pi_y$ are the coordinate projection maps.
The following is offered as a 'baby step' in understanding Munkres proof and might provide an 'intuitive feel' for the problem:
Now $S=\{(x\times \sin(1/x)):x\in(0,1]\}$ and for any $v \gt 0$
$\tag p S \; \; \bigcap \; \; (0, v] \times \{+1\} \;\ne \emptyset$
and
$\tag n S \; \; \bigcap \; \; (0, v] \times \{-1\} \; \ne \emptyset.$
To see this, note that the function $y = \sin(x)$ is periodic and 'keeps hitting' both $+1$ and $-1$.
The OP in encouraged to draw some pictures here that includes the shape of $f(t)$ described by (2) in Section 1.
If $\sin(1/u)=(-1)^n \text{ then } 1/u = \arcsin((-1)^n). $
So
$u = (-1)^n (\frac{\pi}{2} + 2 \pi k)^{-1}.$