For the points that form the Pythagorean triple (for example see illustration n = 5, on the first quadrant at coordinate (4,3) and (3,4)), the transit of circumference occurs exactly at the corners, therefore there are no additional intersecting squares on the upper or lower rows (diagonally NE & SW directions) of such points.
If the center of the circle is instead chosen at the middle of a square grid centered at (1/2,0), the sequence will be 2*A004767(n-1).