The first two lines pick a random integer between 33 and 122 inclusive (the 0xs in .Next() mean those numbers are expressed in hexadecimal notation).
The key.ToString("X") part takes that random integer, converts it to hexadecimal notation, and returns it as a string.
As Blindy pointed out, the Convert.ToString() is redundant and not necessary since it is converting a string to a string.
The final "nxt" variable would consist of that new hexadecimal number (as a string) repeated four times.
Here's a couple of other ways to get that string repeated four times:
string nxt = new StringBuilder().Insert(0, key.ToString("X"), 4).ToString();
string nxt = String.Concat(Enumerable.Repeat(key, 4));
string nxt = $"{key}{key}{key}{key}";