It appears that the puropse of this strut is to cause a failure of the weld attaching the tube steel to the baseplate if the jacketed pipe decides it needs to move to the left. Although it may well be that the welded beam attachment is attached by its edge to the horizontal steel member, in which case the strut will surely cause that weld to fail.
Undoubtedly, there was a need in the analysis for a restraint in this direction. Unfortunately, the stress team appears to have dropped the ball when it came time to turn math into steel.
I think you did well to see this and question it. I can't imagine this strut, in this configuration, being able to develop anything like its design load resistance.
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CraigB