Part of the issue is "square your..." is typically used (AFAIK)
in the traffic pattern to tell pilots to fly a normal pattern leg and not to shortcut - for example, to fly a base leg perpendicular to final as opposed to angling the base leg toward final. A spacing consideration close in.
This example is from outside the pattern. I'm treating it as the same, although I guess it can lead to a bit of confusion in certain contexts (I could be wrong too). Far out, I would expect something more akin to "report 3 mile base" than "square your..." if ATC wanted me to turn left and proceed southbound parallel to the runway in
@eman1200's 8 miles out scenario.
Of course, if we are unsure of an instruction, it is both a good idea and a regulatory requirement to ask.