The sequence demonstrates nested task interactions: 1) Promise microtask executes first, logging 'Promise', 2) setTimeout from Promise queues a macrotask, 3) Original setTimeout macrotask executes, logging 'Timeout', 4) Promise within setTimeout creates a new microtask, logging 'Promise in Timeout', 5) Final setTimeout callback executes, logging 'Timeout in Promise', 6) Shows how microtasks and macrotasks interleave in complex scenarios.