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I agree with you @dandelany as that big blob, 10 O'Clock to your red outline appears to be the battery holder tab. Didn't even occur to me that D7 without a plated through hole was in fact a GPIO pin solder pad. Good Catch!!
Also considering a simple hack of a 18650 backpack with a CR2032 slide in tab, based on this great idea that had limited production back in X-Mas 2017 and no longer manufactured:That product resulted during a powering discussion that @oesterle presented an image in this forum post: Owen Project in which he created a AAx2 using a slide in tab.
I haven't made this mod myself (yet), but was considering it & also read the threads you link to above. I opened the board schematic/layout in Eagle & I think I've figured it out.
The confusion is from the fact that there are two different things called D7 - the diode part name in the Eagle file is "D7", whereas the pad you're looking at is the GPIO pin called "D7", but they are actually unrelated.
It appears to me that Diode D7 is meant to be soldered to the two pads on the left side of the board, near the D27 pin - see the attached photo. In Eagle, these two pads are connected, so "cut the trace" presumably means the trace directly underneath the area between these two pads (being extremely careful not to cut the nearby traces to D28-31).
Hopefully Gordon can chime in and correct me if I'm wrong :)
Edit to add: re: orientation, the part symbol in Eagle shows the cathode (-) pointing down (towards the row of D28-31 pins)