During which step in the Can Crush Lab did water vapor condense inside the can?

The can was filled nearly to the top with water.

The can was placed on the hot stove burner for several minutes.

The can was removed from the hot stove burner.

The can was placed upside-down in the water-filled pan.

So think about condensing for a minute.

That water on the outside of a cold glass is condensation. Same thing with steam and a boiling pot of water with a lid. You take the lid off and the steam condenses on it.

If the can has water in it, or residual water, then the answer is the 2nd option. I'm assuming it is that because of the word heat, which can cause steam when the water heats up.