When we were discussing the schematic the other night, I found a YouTube vid where a guy described exactly how the switch works. How each lug works in conjunction with the others depending on what position the switch is in.
After the explanation, he explains how each of the above wiring schemes both work.
Let me see if I can find the video. It may help someone in the future.
Here it is:
https://youtu.be/o7zcb-2daHU
Thanks for posting this. I get confused with this stuff if I am not doing it a lot.