What we have here are a few photos taken of an early version of Final Fantasy VII, from an unknown point in its development.
As you can see, the game isn't exactly detailed at this stage -- Cloud's in-battle model is about as simple as his field one, and the backgrounds are super sparse, possibly placeholders.
It also looks like the dialogue windows were going to be relegated to the bottom (and top?) of the screen like in past FFs. And the SD portraits in the after-battle screen are a nice touch; too bad they didn't make it. Oh well, they wouldn't have been that germane to the seriousness of the game anyway.
These pictures are from Japanese site Sakuragaoka, which has a growing archive of unreleased and early-version games , with more pictures of FFVII including interesting variations of the logo as the game was being planned. Always fascinating stuff.