look here X can be interpreted as any combination of 0's and 1's. so whatever input given to the fm it will interpret it as a language in which string starts and end with same character
for instance if we have 1(01010)1
Here first 1 and last 1 is W
and middle 01010 treated as X
and it is possible to make a Finite Automata for the language which starts and ends with same character
whereas in second language we cannot do the same in any possible way