The 1 → 4 → 5 → 1 path from stage 1 hasn't changed: the roots still go G → C → D → G. Only the colour on top is new. Play Gmaj7 → Cmaj7 → D7 → G and the 7ths make a little tune of their own on the top strings.
Follow the blue arrows: Gmaj7's F♯ drops to Cmaj7's B, then climbs to D7's C, which pulls down to G's B. That C → B is the sound of D7 going home.
roots: 1 4 5 17ths: F♯ B C
Gmaj7
Cmaj7
D7
G
Try this
Play the loop slowly and sing the top note of each chord: F♯, B, C, B. Then the plain G C D G for comparison.
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