I don't know why this is confusing. The owner's manual basically says that (for a Z51) you should be a half quart high when competitive driving. After you're done, you remove that extra half quart.
The dipstick has "full" one one side, and a half quart low on the other. When you do competitive driving, you use the other side of the stick to measure your oil. It's a convenience thing.
If you're not in a Z51, you ignore the other side of the stick.
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