Colored arrows a little hard for color blind me to interpret. Reading the description several times you may be entirely correct.
The screw holding down the spring/peep does it thread into a user tapped hole in the bolt sleeve, or is it independent of the normal pivot pin? As said before a lot going on there.
Maybe the fellow that has it will post the unit disassembled in the future. He really does need to clean and lube it, right?