This example comes from Victor Guillemin and Alan Pollack's Differential Topology. They are trying to emphasize that just because an immersion mapping $f: X \to Y$ is injective (we're talking about the infectivity of $f$, not $df_{x}$), the image of $f$ may not necessarily be a submanifold of $Y$. They supply the following figure as an example:
I understand why this is an injective mapping but do not understand why the image would not be a manifold. The intersection is removed so I do not see where any other trouble points may lie.