When people explain things poorly at work?!

[Originalnaya]

How to deal with this... I end up looking like the stupid one as I panic

Take deep breaths obviously. Are there any simple questions you could ask to clarify things?

I get where you are coming from, I had a colleague who had been in their role for 20 years and always gave directions based on departments that no longer existed "turn right at the bit that used to be switchboard" when that room hasn't been used by switchboard for over 10 years!