Small gasoline motor with bad magneto converted to run on battery ignition.
The transformer is Model T vibrator coil with one side of primary connected to ground and other side connected to 6 volt battery ( or four "D" cells) then through On/Off switch to ignition points ( shown as square wave generator) and stationary jaw of points grounded.
Secondary of transformer is sparkplug voltage to fire sparkplug ( shown as lamp). When switch is in Off position no current would flow back through secondary of transformer but with lamp as sparkplug it does in simulator.
I wonder if they bead welded and ground lobe on top of crankshaft to operate rubbing block of ignition points?