Question: What is depicted by the picture below and what condition can it be seen in?

Response: These are eruptive xanthomas! Rruptive xanthomas are papules that are yellow/red and scattered over the extremities and body/trunk and associated with hyperlipidemia syndromes and diabetes among other conditions. Treatment often involves modification of lifestyle factors and treating the underlying condition.

Reference

Eruptive xanthomas in a patient with severe hypertriglyceridemia and type 2 diabetes. Barry Ladizinski, Kachiu C. Lee. CMAJ Dec 2013, 185 (18) 1600; DOI: 10.1503/cmaj.130148