die Etappe
stage
A section of a longer route, journey, or sporting competition.
Die heutige Etappe der Tour de France führt durch die Alpen.
Today's stage of the Tour de France leads through the Alps.

stage
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stage
A section of a longer route, journey, or sporting competition.
Die heutige Etappe der Tour de France führt durch die Alpen.
Today's stage of the Tour de France leads through the Alps.

Whether a section of a route or a phase of development is meant can be recognized from context. Words like 'Rennen' (race), 'Tour' (tour), or 'Wanderung' (hike) point to a route. Terms like 'Leben' (life), 'Projekt' (project), or 'Entwicklung' (development) indicate a phase in time.
Die erste Etappe der Wanderung war besonders steil.
The first stage of the hike was especially steep.
In the context of sports or travel, 'Etappe' is often used with verbs like 'gewinnen' (to win), 'fahren' (to ride/drive), or 'meistern' (to master). Typical adjectives are 'lang' (long), 'kurz' (short), 'schwer' (difficult), or 'entscheidend' (decisive).
Der Radfahrer konnte die letzte Etappe des Rennens für sich entscheiden.
The cyclist was able to win the final stage of the race.
In the figurative sense, 'Etappe' describes a phase in a process. Common combinations are 'eine wichtige Etappe im Leben' (an important stage in life) or 'eine neue Etappe in der Karriere' (a new stage in one's career). Verbs like 'erreichen' (to reach) or 'abschließen' (to complete) fit well with it.
Mit dem neuen Job beginnt für sie eine spannende Etappe.
With the new job, an exciting stage begins for her.
step
'der Schritt' and 'die Etappe' can both mean a part of something larger. 'Schritt' is usually a single action in a plan or process. This can be very small and concrete, for example the next step in a set of instructions. 'Etappe' is more like a larger section of a longer path, journey, competition, or development. You can have several steps within one stage. The words can be confused because both express a sequence. As a simple guide: 'Schritt' is smaller and closer to the action, while 'Etappe' is larger and describes a section.

Nach der ersten Etappe der Reise machen wir zwei Tage Pause.
After the first stage of the trip, we will take a two-day break.
Als nächsten Schritt rufen wir den Vermieter an.
As the next step, we will call the landlord.