Problematic wording in expansion algorithm

[kasei]

The wording of part 9 of the Expansion algorithm is confusing. I suspect it may have a typo. It starts out discussing the initialization of a dictionary nests (which #8 directly preceding does as a single algorithmic item), but then goes on to mention a second variable input type. The wording for what to do with this second variable is unclear, but then there's a huge set of sub-items under #9 that seems to have very little to do with nests.

Initialize an empty dictionary, nests, and input type to the last value of any member expanding to @type. For each key and value in element, ordered lexicographically by key if ordered is true:

How does input type relate to nests?
Should the for each here be a new item #10?