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Egg is a recurring status in the series.
Egg is a temporary monster specific status that wears off when the monster receives damage. Monsters inflicted by this status will have their graphics look like an egg. Some monster formations start with this status, which is defined by their group data. The Egg status is set when battle begins and ignores priority.
While under this status, the monster will not run any of its battle script until they hatch. Monsters with this status do nothing until attacked, the monster in the egg will use Hatch to remove the Egg status and run its normal battle script. Monsters that have been berserked while under this status will attack the player, and they will also never hatch themselves.