You will be able to do this minigame starting from Chapter 5 of the main story, but it’ll become missable once you get locked out of Midgar at the end of Chapter 7. At the beginning of Chapter 5, you will be inside of the Shinra Building, which is where you need to be. Head to the SOLDIER Floor and locate the Training Room, speaking to the one researcher inside. He mentions that they will be testing your physical abilities, so agree to participate to start the Squats minigame.
When you first start, you will be facing the Trooper, who should be used to get accustomed to the timing of the whole thing. Basically, Zack will crouch down and perform a squat, and you have to press the designated button to continue doing squats. If you don’t press the button at the correct timing, then Zack will stop doing squats and he will reset his position. Your objective is to get more squats than your opponent, in the allotted time. Of course, there’s a bit more to it than that, as you will see below.
For every five consecutive squats you perform successfully without failing, the camera will do a close up on Zack. While this is happen, Zack will auto-perform another squat without needing your input, and the tempo of the squats will increase slightly. If you fail during this time, Zack will reset and the speed will go back to the slowest setting. There’s three faster speeds over the initial one, where you might need to adjust the timing of your button presses a little bit earlier in order to compensate for the increased speed.
That’s the basics of the whole squats minigame, with there being four different opponents you have to defeat, in order to unlock the trophy/achievement. Each opponent will get progressively more challenging, with the SOLDIER 2nd Class being the most difficult. To beat that opponent, you will likely need 54-55 squats, at least. If you don’t fail at all, you can get a maximum of 68 squats, so you are likely only able to mess up a single time before not being able to defeat him. Defeat the SOLDIER 2nd Class, the last opponent, to unlock Shinra's Squats Champion.
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