Ok let's dissect your code.
N = int(input("Enter N: "))
number = 1
count = 0
Here you are taking user input and setting N to some number,
for the sake of brevity let's say 4. It gets casted as an int so it's now
an integer. You also initialize a count to 0 for looping and a number variable holding value 1.
while count < N:
x = 0
for i in range(1, number+1):
if number % i == 0:
x = x + 1
if x == 2:
print(i)
count = count + 1
number = number + 1
Here you say while count is less than N keep doing the chunk of code indented.
So in our N input case (4) we loop through until count is equal to 4 which breaks the logic of the while loop. Your first iteration there's an x = 0 this means everytime you start again from the top x becomes 0. Next you enter a for loop going from 1 up to but not including your number (1) + 1 more to make 2. you then check if the number is divisible by whatever i equals in the for loop and whenever that happens you add 1 to x. After iteration happens you then check if x is 2, which is true and so you enter the if block after the for loop. Everytime you hit that second if block you update count by adding one to it. now keep in mind it'll keep updating so long as that if x == 2 is met and it will be met throughout each iteration so eventually your while loop will break because of that. Hence why it doesn't go forever.