>But why the parsing? I don't see what it is accomplishing?

It's not only for VFP6 SP3 and up. It writes both the procedure code + compiled object code. During generating code it writes both to same .krt file.

LOCATE FOR Objectname = 'StoredProceduresSource'
*...
LOCATE FOR Objectname = 'StoredProceduresObject'

IOW it writes recX+recY to same file and reads back from there, parses and puts.

With VFP6 SP3 and later it could just save the source and compile at runtime to get objcode. It's old code and working.
Cetin