So, everyone seems to have theories about what Jax's live action shots meant. I want to throw my own hat in the ring when it comes to this.
I've seen a couple about him getting into a bad car accident or hitting someone, but I'm not too convinced that it's that. What I think it could be is Jax running away from something.
Details below read more, because this became long.
Mainly, because of the first clip.
Neither of these screenshots look like someone driving a car. It looks like someone running across the street. If Jax had gotten into an accident while driving, then it doesn't really make sense for the first images he thinks of to be running across the street.
If Jax was running away from home, then why was he running in the first clip rather than taking a car like we see in the second clip? He might simply not have access to one when he was running away initially. In fact, if he was desperate enough to run away he might have stolen one.
But that is simply speculation with no evidence to back it up.
So, what was Jax running from? I think he was in some kind of abusive situation. In the fifth episode, when everyone was talking about their lives pre-Digital Circus, Jax notably doesn't say a word about his life before. And when Ragatha brings up her abusive mother, he doesn't say anything. Instead, he looks away with a pained expression. Almost as if he has a similar experience.
Now, Gooseworx has stated that Jax's age to be 22, but when later asked if this was the age he entered the circus or if he was younger when he entered she said, "Don't you ask me questions I haven't thought about!", meaning there is a chance that Jax entered the circus at a younger age. Given how long he's been there if 22 wasn't the age when he entered the circus then given how long Jax has been there, that means he likely ended up there while as a teen.
Something else is that a very common trope within cartoons is a character running away to join the circus.
Does this mean that I think he joined intentionally? No. I don't think he had any clue what the headset was when he put it on. Instead, I think he was just looking for somewhere to hide out for a bit while running away.
If he were a teenager that was running away from home, then it makes sense that he wouldn't want to leave the circus. Not only, because if he leaves then he might have to go back to an abusive situation, but because he entered the circus as a teenager and would be exiting it as an adult he would have to deal with a very difficult adjustment to real adult life.
Which is why, when faced with the option to leave, he chooses to stay.