Yes I was sloppy when I read the description for W and K; I saw the 'allowance' and skimmed over the 'rough' and 'finish'.
And I went back and looked at the paths with the two lines in and out; and I think now I understand it better
With them out the G70 starts from the same start point as the G71; X.575, Z.1. This is the spot that the tool moves to after the final run through on the G71 and after the G70 it returns here then does the G28.
With them in the G70 moves from the spot where the G71 has returned to, the original start point, up to X21. Z.1 and in doing so defines a new start point. At the end of the G70 it returns from the final path coordinate X.6 Z-2.375 in a rapid to the new start point. Because this is a rapid with by X and Z motion both axes move simultaneously until one reaches it destination then continues linear until the second gets there. So the tool does a retract at 45 degrees which takes it into the side of the hole.
An open mind is a virtue...so long as all the common sense has not leaked out.