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You should probably reach out to Dru Crawley and/or Linda Lawrie, I suspect one of them is responsible for this work.

There is a small mention in the EnergyPlus documentation here, but it doesn't give a lot of detail:

Using a heuristic method, the weather converter can determine typical and extreme weather periods for full year weather files. These will then be shown on the Typical/Extreme Periods header record. These are also reported in the statistical report output from the Weather Converter.