"What do I do?" "What you do, is be that type of person, the type of person who does not pay to fix a scratch in car she didn't cause." In this example that you gave, that sentence has to be an answer to a question like that. The person answering is just responding with part of the question. But yes, they are giving advice, so it means something like "you should...".

Yes, I think you are right too, Terry. It's one person giving advice to another, telling her how she should behave.

I think you are correct, it's something like "what you have to do" or "what you should/ought to do".

If there it was following something like this : "Be careful for" that would make sense

Where is this example from? It does not seem to be written in accurate English.