Verb derived from the term "(to) bug out". To retreat or flee, especially in a panic during a battle. In a non-military use, it means to depart quickly. Originated among GI's early in the Korean War (1950-1953) and entered civilian culture from there. Very similar to "bail out" used by aircrew in earlier wars and still in use today, sometimes as "(to) bail".
"Hey Sarge! They're buggin-out from the ridge over there. Wonder what they're up to now? Should we fall back?"
"Hey man, I'm buggin out, I've got stuff to do. Thanks for the beer."