You will click on the words in the Logs window that appear in a jumbled mess of characters, finding the likeness which means how many characters match with the actual correct password.
Lets say you pick "ball". answer = bake / likeness = 2 "ball" has 2 matching characters in the same spot with the answer. Lets say you pick "abek". This time likeness = 0 since no characters match the same spot despite having the exact letters as the answer.
You will be logged upon initial connection...You will get 3 chances to solve the puzzle before you will get disconnected and you will have to reconnect to attempt solving the puzzle again.
Explanation Video by Hi_Guys