$$
\forall x.\;p\bigl(f(x), x\bigr)\;\to\;\Bigl(\exists y.\;p\bigl(f\bigl(g(x,y)\bigr), g(x,y)\bigr)\;\land\;q\bigl(x, f(x)\bigr)\Bigr).
$$
The book reads this as:
“For all $x$, if $p(f(x), x)$ then there exists a $y$ such that $\color{cyan}{\Bigr(}p\bigl(f(g(x,y)), g(x,y)\bigr)$ and $q\bigl(x, f(x)\bigr)\color{cyan}{\Bigr)}$.”
Your book appears to be using the convention that a period immediately following a quantification signals that the quantification scopes as far rightwards as possible, and presenting the formula $$\forall x\color\red{\biggl(}p\bigl(f(x), x\bigr)\;\to\;\exists y\color{cyan}{\Bigl(}p\bigl(f\bigl(g(x,y)\bigr), g(x,y)\bigr)\;\land\;q\bigl(x, f(x)\bigr)\color{cyan}{\Bigr)}\color\red{\biggr)}.\tag1$$
Not everyone understands the period that way, in which case the alternative reading—following the (more sensible) convention that quantifiers bind more strongly than conjunctions—is $$\color\red{\Bigl(}\forall x \;p\bigl(f(x), x\bigr)\color\red{\Bigr)}\;\to\;\color{cyan}{\Bigl(}\exists y\; p\bigl(f\bigl(g(x,y)\bigr), g(x,y)\bigr)\color{cyan}{\Bigr)}\;\land\;q\bigl(x, f(x)\bigr).\tag2$$
Formula 1 is closed, whereas Formula 2 contains four free occurrences of $x$ (to clarify this, Formula 2's bound occurrences of $x$ can simply be renamed $z).$
However, I first thought it might mean:
“If $\color\red{\Bigl(}$for all $x$, $p(f(x), x)\color\red{\Bigr)},$ then there exists a $y$ such that $\color{cyan}{\Bigr(}p\bigl(f(g(x,y)), g(x,y)\bigr)\;\land\;q\bigl(x, f(x)\bigr)\color{cyan}{\Bigr)}\quad.\text”\tag3$
Your reading conflates the above conventions while being compatible with neither: you are reading that universal quantification's scope according to Convention 2 but reading that existential quantification's scope according to Convention 1! (Formulae 2 and 3 turn out to be logically equivalent, but only because predicate $q$ doesn't contain $y.)$
P.S. Regarding my "the more sensible convention" remark: using periods as scope delimiters is poor practice in mathematics and contemporary formal logic—as opposed to computer science and lambda calculus, where the convention may be more entrenched—because it is a recipe for miscommunication, given that, unfortunately, it isn't uncommon for instructors and students to insert periods/commas/colons in logic formulae ornamentally rather than as syntactic markers.
P.P.S. To sidestep potential misunderstanding, we can alternatively just use parentheses more liberally.