"If I read you correctly you are finished turning only to be diagnal to the wall."
In the body, yes diagonal to wall. The foot might turn more - though officially it is also DW.
"Step three taken is under the body.
So if there is no CBM on step 2 and 3. they are square.Where does that put you."
You are confusing CBM (a particular type of rotation) with rotation in general. If you consult your book again, you will see that there is rotation of the feet on all three steps.
"Also there is 3/8ths of a turn between between 1 and 3. and 3/8ths of a turn between 4 and 7."
Yes, but again that is describing the FEET NOT THE BODY, as you would see if you took the time to read the preface to your book.