Hi Mike,
I do not have a Baystar, but I have a Newmar, and I think the items you are asking about are the same.
The valve you are not sure about prevents the water pump from pulling from the fresh water tank. When you close that valve and open the one on the winterization hose, you create a new source of liquid for the pump to pull from.
When you are sanitizing, you want your fresh water tank fill valve to be open, with the other valves positioned as just discussed. That puts your sanitizing solution in the fresh water tank.
When winterizing, turn the fresh water tank fill valve to the closed position. This prevents your antifreeze from going into the fresh water tank and directs it to the plumbing system throughout the coach. With the tank drained, there is no reason to put antifreeze in there.
I also bypass the water heater when winterizing, although some do not. The water heater bypass valves are located behind the water heater, usually accessible via a cabinet door under the sink.
There is a Youtube channel by RVGeeks that has numerous videos I have found helpful with Newmars. They have one that specifically speaks to winterization and would be worth your while.