If the LOOP macro is underlined in red, most likely you did not select the whole line before applying the intention. Undo, select the whole line including the semicolon and apply the Add LOOP macro intention again.
The LOOP macro will repeat the "System.out.println("Draw here");" statement for each shape listed in node.shapes.
We, however, need to have the "System.out.println("Draw here");" statements replaced with code that draws each of these shapes. The COPY_SRC macro will do just that. Please, select the whole statement within the LOOP macro again, including the semicolon, hit Alt + Enter and choose Node macro.
Type in COPY_SRC (Control + Space) and you get a macro that will replace "System.out.println("Draw here");" with the current shape for all shapes that the LOOP macro provides.
Make sure your COPY_SRC macro wraps the whole statement, including the semicolon, like it is displayed in the picture. If not, undo, select the whole statement and insert the COPY_SRC macro again.
Now we get Canvas to be translated into a Java class and we also made a place for Shapes to add the code that will draw them. The time is up for us to define the actual translation rules for Shapes themselves, so that we get a "graphics.drawCircle()" method inserted in the generated code as a replacement for the Circle shape. You need to open the main mapping configuration and add a new entry to the "reduction rules" section: