Asynchronous 'ripple' counter. Counts down from 7 to 0 then repeats.
(111-110-101-100-011-101-001-000...repeat)
Controlled via logic source connected to the CLK input of the upper D-type latch.
Note: The clock input of the second flip-flop (middle) is skewed by the clock-to-Q propagation delay of the first flip-flop (top). The same happens between the second and third flip-flop (bottom).
This cumulative effect allows the sequence to work but forms a ripple error as seen in the 7-segment display with temporary unintended values.
This is a know issue with ripple counters; not a mistake in the circuit :-)