Dan's funky embroidery attachment, Singer No. 26524. Notice the third spool of embroidery thread!
It makes tiny loops about the size of match heads with the third thread, which the needle tacks down.
Here's a sample of the work; black bottom thread, invisible top thread and rainbow varigated embroidery thread, showing different stitch lengths.
Here's an extreme closeup
The pamphlet calls this attachment No. 26538. Here's a copy of the
pamphlet.