A theoretical room or literal pod where a member of an enslaved population would reside to recoup after fulfilling their daily forced labor quotas. These space-efficient pods would presumably be equipped with the minimum amount of enrichment necessary to keep morale and mental health crises to a manageable threshold.
Another attribution to the coinage of this term likely has to do with the fact that insect protein is magnitudes more resource-efficient to produce than conventional plant or animal protein sources. So, to drastically cut down food production costs, it is strongly implicated that insect protein would become the world's default protein source. Major food production giants, such as Tyson, have already begun exploring different implementations of mass produced insect protein for human consumption, through the cultivation of black soldier fly larva, for one example.
Male Slave #2680357287: "Hey G-55-906B, did you hear that G-56-908A was dragged out of his bugpod to the recycling center to become nutrient paste? I hope I have enough carbon credits to make it to my 45th birthday."
Male Slave #2680357633: "Shut the fuck up, you fucking idiot! This assembly line is rigged with labor enforcement listening devices for miles!"