I don't know how to read many to many relationships
The many-to-many nature of the relationship is expressed in the Physical diagram by breaking the relationship down into a pair of many-to-one relationships.  A many-to-one relationship can be implemented using a foreign key that references a primary key.  

Project-Employee contains a foreign key (presumably EmployeeID) that references the primary key of the Employee table (presumably ID).  That is why there is only one Employee allowed on that end on the upper line. 

Note in passing that if you were to implement using some kind of non-relational DB, the diagram on the left would be more useful than the one on the right.  

Also note in passing that, in the classical literature on DB design,  the one on the left would have been called the "Conceptual Model" and the one on the right would have been called the "Logical Model".  The physical model would have included DBMS specific features like tablespaces, indexes, and clusters.  Times change, and terminology changes in ways that can be bewildering to those who learned it the original way.