Since we lack a snowflake expert on writing.se, I went to the source and bought the book. That book is an experience, one which I don't want to regurgitate in full here, so to elucidate the material on the published article here's what the step 3 paragraph summary is asking for (and the elements you should figure out prior to writing it).

Step 3) The above gives you a high-level view of your novel. Now you need something similar for the storylines of each of your characters. Characters are the most important part of any novel, and the time you invest in designing them up front will pay off ten-fold when you start writing. For each of your major characters, take an hour and write a one-page summary sheet that tells:
The character’s name

A one-sentence summary of the character’s storyline
The character’s motivation (what does he/she want abstractly?)
The character’s goal (what does he/she want concretely?)
The character’s conflict (what prevents him/her from reaching this goal?)
The character’s epiphany (what will he/she learn, how will he/she change?
A one-paragraph summary of the character’s storyline

First, the paragraph you're writing for each character is a paragraph written as if that character were the protagonist of the book. You are attempting to write the 5 sentence paragraph you wrote previously for the whole book in the pov of the character you are currently analyzing.
The primary things advocated by the snowflake method for a character sheet in step 3:

What they value above all else (abstract motivations, should be at least 2 things that they value; things they would be unwilling to compromise on and are axiomatic to their thinking)
Goals (a set of concrete things they desire)
Conflict (what things stand in the way of achieving said goal; of sticking to their values. Ideally the events of the story will bring goals/values into conflict with each other so that the character has to make choices)
Epiphany (What thing will they realize due to the conflicts which compromise their goals values?)
A paragraph that emphasizes their stakes, reactions & change that represents their whole path through the conflict. Again, likely oriented around the same disasters outlined in previous steps.

Example - The Prestige - Borden (Spoilers - Movie)

Borden Values:

Getting his revenge on Angier (will not compromise on this)
Keeping the secret of his magic
Having the technically best magic show/being the best magician
His assistant, and then his Wife/Daughter
The sanctity of his perfect magic trick: the transported man.

Goals: (Concrete, obtainable, but difficult)

Star in his own magic show
Keep Angier from ruining/stealing his magic show
Be a better magician than Angier
Protect his family from Angier, himself

Conflict:

Because Borden's actions led to the death of Angier's love, Angier will not leave him alone to be successful.
Because he has been harmed by Angier, he feels he must get revenge on Angier
Borden has a secret that only he and one other person know that is destroying his life & relationships, but is important to keep to protect his act.
Borden needs to know the secret behind Angier's trick since it is showing up his own act, one he has sacrificed greatly for.

Epiphany:
He and Angier have done monstrous things that have cost them each everything (he a wife, a daughter, & a brother), and it wasn't worth it, but he can make the sacrifice to save his better half and potentially his daughter's future)
Paragraph Summary:
Borden and Angier are assistant magicians when Borden, through a lack of attention, kills Angier's wife by tying the wrong knot for a water escape trick and he loses his job and mentor. With no connections to gain an audience, Borden perfects his tricks on the side, but he loses 2 fingers to a deception orchestrated by Angier and then his audience after Angier steals and perfects the theatrics of the act. Driven by rage, Borden learns Angier's method and tries to expose, ridicule and bring down Angier's show only to have his close, personal assistant kidnapped; worse he is required to give up his trick to the man he hates to save his assistant's life. The journal he gave Angier, a red herring, tricked the man into traveling to America, but Angier returns with a magical device that he uses to perfect the transported-man act. When Borden investigates he believes he has seen Angier die below stage, only to be arrested for the man's death. Borden is on death row, his daughter is up for adoption, his wife dead at her own hand, and Angier, somehow not actually dead, desperately wants to know the original secret to the Transported Man. Borden agrees to give him the secret on certain conditions, but when his personal assistant learns the truth of Angier he murders the real Angier.
(As the author, you would spoil the ending, but I for reason's have not so fully done so)

While it's true that what we're largely after here is plot; by prioritizing story and conflict you end up with a pitchable, sellable story. But it only works if the characters are to be believed. A lot of who these people are is still missing, but knowing their core drivers means that the smaller details can fit in around the more important ones. If you fail to create interesting, likable characters in the later steps who believably end up in these situations with these values, then you haven't made good enough characters; but if you can do the normal stuff on top of this layer you are assured to have written a story this at minimum on point with stakes a reader can invest in; which does help with getting them to empathize with the character.
To respect the author & publishing, if you need more information on any of the points above they can be found in the book. I think the thing I was missing was the way the elements should play together to cause conflict & epiphany. The book is rife with examples that make the point clear; though your mileage may vary as the points are made via narration of an example story that illustrates both the method and the reason why the method is supposed to work. The book interestingly uses "dog-fooding" in that it is written using the method it describes and is therefor itself an example of how each thing should be used. Off-putting at first, but ultimately helpful.

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