MM:
Ok, bearing in mind that in practice the path A-C-B would be very short and wide open, with the relief valve probably housed in the pump frame:
1) What is the pressure difference between C and B, and if there is one, why? (If there is no resistance to flow, there can be no pressure difference. Consider the electrical analogy--if there is 12V at A, what is the voltage at B and C?)
2) What is the pressure difference between C and A, and if there is one, why?
Now, you apparently accept that there is a depressed pressure level at A due to the pump demand drawing from the pan and overcoming the attending gravitational and frictional losses. Therefore, the pressure at B is the same as A and there is no pressure benefit from the bypass flow. There is not enough flow coming from B to raise the pressure to the degree necessary to shut off the draw from the pan, or indeed, reverse that flow. If there was a lot of flow from B reversing that pan flow would be possible and the manifold pressure would go up, but we know from the nature of the circuit that the B flow is a fraction of A.
The major benefit for the arrangement is that there is no need to provide a return path to the pan for the bypass flow. The guy at PRI was just giving you a load of sales malarkey.