Some children are born with a problem called developmental dysplasia of the hip, which is an abnormal development of the hip where the ball part doesn’t stay firmly in place above the femur, or thigh bone. This can make the hip too flexible and prone to dislocating.
The brace you saw is likely a Pavlic harness. This harness keeps the baby’s hips in position so the hips form or develop normally. After a few months, if the treatment is successful, the baby will not need the harness any longer.