The top diagram shows the formation of the virtual object where converging rays are prevented from meeting by the diverging lens.
Then those converging rays are made to diverge by the lens and so a virtual image is formed.
Update as a result of a comment from @Floris.
I included a converging lens just to check the orientation of the virtual object and the virtual image for the diverging lens.
As pointed out by @Floris the diagram that the OP had the virtual object and the virtual image both upright so I investigated whether that was possible by moving the position of the virtual object relative to the focal point of the diverging lens.
Rays labelled $1$ have the virtual object in the focal plane of the diverging lens and that produces an image at infinity.
Rays labelled $s$ have the virtual object outside the focal point of the diverging lens and that always produces an inverted and virtual image.
Rays labelled $3$ have the virtual object inside the focal point of the diverging lens and that produces an upright image which is real.