Here is the theorem Lee is proving.
(It states that any open cover on a smooth manifold has a regular refinement (a refinement which is countable, locally finite, and satisfies additional ad-hoc properties). The proof is based on a previously proven lemma which states that any smooth manifold has a countable, locally finite open cover with paracompact sets.)
I can understand everything except for the last paragraph. In particular, I am unable to visualize the situation in the last paragraph. Can anyone help me visualize the situation? Thanks!

Maybe it's easier to see if we change the given precompact open sets and $\textit{then}$ define the charts. For this purpose, we can employ a trick, which I think I learned from Munkres in his book, Analysis on Manifolds. Of course, if $M$ is compact, there is nothing to do. Otherwise, set $K_{-1}=K_0=\emptyset$ and $K_1=\overline V_1$ and if $\{K_i\}^n_{i=1}$ have been chosen, let $m$ be the first integer greater than $n$ such that $K_n\subseteq \bigcup^m_{i=1}V_i$ and define $K_{n+1}=\bigcup^m_{j=1}\overline V_j.$
In what follows, I recalled the proof (I hope correctly!) just by drawing a picture of the expanding $K_{i-1},K_i,K_{i+1},K_{i+2}$ and their interiors, and overlaying the charts.
For each $A_{\alpha}\in \Xi,\ $ the given open cover, construct the open set $(\text{int}K_{i+2}\setminus K_{i-1})\cap A_{\alpha}$ and for each $p\in (\text{int}K_{i+2}\setminus K_{i-1})\cap A_{\alpha},\ \textit{now}$ take charts $(U_{p,\alpha},\psi_{p,\alpha})$ such that $U_{p,\alpha}\subseteq (\text{int}K_{i+2}\setminus K_{i-1})\cap A_{\alpha},\ \psi_{p,\alpha}(p)=0$ and $\psi_{p,\alpha}(U_{p,\alpha})\subseteq B_3(0).$
If we let $W_{p,\alpha}=\psi^{-1}_{p,\alpha}(B_1(0))$, then $W_{p,\alpha}\subseteq(\text{int}K_{i+2}\setminus K_{i-1})\cap A_{\alpha}$. Clearly, $\{W_{p,\alpha}:p\in M,\alpha\in J\}$ refines $\Xi$. And, by construction, $K_{i+1}\subseteq \text{int}K_{i+2}$ so from the collection $\{W_{p,\alpha}:p\in M,\alpha\in J\}$ we get a finite covering of the compact set $K_{i+1}\setminus \text{int}K_i.$ As this is true for each integer $i$, we obtain a countable sequence of sets $\{(W'_i,\psi'_i)\}^{\infty}_{i=1}$ and these are the sets that work. Indeed, if $p\in M$ then there is an integer $i$ such that $p\in \text{int}K_i$, which by construction, can intersect only finitely many $W'_i$.