Notice that the C-shape on the 12th fret repeats the C-shape of the 0-fret (i.e. open C-shape built from the nut of the guitar). CAGED is a 5-pattern system—the whole series of patterns repeat every 5 patterns, like a loop, and the second diagram shows that very clearly.
Why is this relevant?
Well, that tells you that you don't need to memorize notes across all 24 frets of the guitar fretboard—you just need to learn what's in the 1st half (12 frets) of the fretboard and the 2nd half mirrors the first one.
Furthermore, it tells you that this half is split into 5 distinct "slices"—not 4, not 8, but 5. So, the idea here is—the fewer patterns, the easier it is to memorize the scale(s) across the entire fretboard. Take your time to observe this for yourself on the full-fretboard version of this chart.
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