What’s happening in this picture? Use Netmon to figure it out?

Ok, here’s an interesting picture from my network this morning.  Can you figure out what’s going on?  Is Windows 7 confused?  By the way, Netmon 3.x is a really powerful network tool.  I was using it yesterday to diagnose a completely different question.

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Get Netmon 3.2 @ https://www.microsoft.com/downloads/details.aspx?FamilyID=f4db40af-1e08-4a21-a26b-ec2f4dc4190d&DisplayLang=en.  See the Netmon blog @ https://blogs.technet.com/netmon/.