I know it is used with CNC machining and/or robotic manufacturing operations, But I can't remember exactly what for.

I can assure you that the chances are slim that you have seen one like this, or more precisely one that does what this one does. You are correct that it is used with a robot, just like Herb. What does it do though???

It diffuses bombs. It creates lasers. It measures earthquakes. It detects flying airplanes. It precision cuts diamonds. It drills through rock. It launches rockets. It's an anal probe. It records temperatures. It's a paper weight. It videos solar eclipses. It coils cable. It cleans heavy artillery.

One of those has to be right.

sorry mob, none of those are even close

So that only leaves.... a counter weight?

Looks like some kind of tracer.

It detects the dimensions of things by touching them all over and creating images of them

No

Close

again, close except for creating images OF them

I've seen the robotic tool changer on machining robots. Is it a reverse engineering 3D touch probe?

Something like what's used for tracing the patterns of master coins to replicate them.