When you run an official MS update (where your current dashboard is lower than the one you're applying), as part of the update, your bootloaders are updated and an eFuse in the CPU is blown, which is what your LDV is. The big one for us is the eFuse for the CB Bootloader. On a JTAG console, the CB is exploitable. However if you were to update a retail MS Dash higher than 7371, this CB Bootloader will be updated and the CB eFuse burned to prevent you from downgrading (a bit like locking the door after closing it). If you're into iPhones and Jailbreaking, it's like accepting an iOS update and your baseband being updated, stopping your iPhone from working with unlock software like redsn0w.
The control of the CB eFuse is from R6T3. If we stop the circuit by either removing R6T3 or bridging the points, the eFuse cannot be burned and we are always able to boot a CB version lower than what's installed (you would get an error during the update too). You could in fact downgrade right back to 1888 and it would still work. Once you cross that bridge and update past 7371 with this circuit closed, there's no going back.
I hope this answers your question!