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It uses a prompt transmutation trick (convert the uploaded images into a textual description; can verify by viewing the description of the uploaded image) and the strength of Imagen 3's actually modern text encoder to be able to adhere to those long transmuted descriptions for Subject/Scene/Style.
Wouldn't it be possible to draw a rough sketch of a terrain, drop a picture of the character, draw a 3D spline for the walk path, while having a traditional keyframe style editor, and give certain points some keyframe actions (like character A turns on his flashlight at frame 60) - in short, something that allows minute creative control just like current tools do?