Baby sock heel pattern. Please help.

I need someone to spell out how to do this short row heel. It states: work foot as given in our sock guide.
With basic color and st-st work short row heel across needle 1 & 4., leave stitches on 2 & 3 on holder (can’t I just cap my ends??) After 1st half of heel K2 reds with basic across all sts. At end of heel cont in rnds with stripes. Get all this. Here’s the issue. It says Work a wrap stitch as follows: wyif insert needle into 1st stitch from right, then slip stitch and yarn tog, and pull. Yarn firmly back. This brings the stitch over the needle, so it wraps.Return yarn to front and purl rem sts across needle 1 and across needle 4. Turn. I’m confused on the yarn together step. Thanks

Welcome to KH!
Yes, you can cap the needle ends on the instep sts while you work the heel.
The wrapped stitch might be similar to German short rows. Here’s a video for German short rows for sock heels that may help:

What is the name of your pattern? Can you give us just a link to it?

It’s Regia Baby Sock. Here’s the reference pages:

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I would substitute the German short rows or conventional wrap & turn for the short rows in this pattern. That can clearly be done for a heel as in the video and they are close enough to the pattern description to work.

Thank you sooo much!