The reason for returning water to both sides of the boiler, the balancing valves and the bypass loop, are because there are 41 gallons of water in the 520 boiler. Returning to only one side will create zones of varying temps inside the boiler.
If the single return line is on the same side as the aquastat, the cold water is hitting the aquastat probe and shutting off the circulator, causing short cycling, while the other side of the boiler remains relatively warm. If the single return line is piped to the other side of the boiler, the aquastat doesn't sense the drop in water temperature, so the burner doesn't come on soon enough and the domestic water coil temperature is affected. In both cases, a single return line causes a short circuit through one side of the boiler.
The bypass line, in conjunction with the bypass valves will force some of the cooler return water back into the heating loops, thus moderating the heating zone water and helping to avoid the shock of cold return water flooding the boiler. The valves have to be adjusted through experimentation so that the circulator doesn't short cycle, the domestic coil isn't overly affected by the cool water, and so the boiler can sense the need to produce more heat.
In idle periods, the bypass loop will also help to avoid stratification of the internal boiler water temperatures by using gravity to naturally circulate the water inside the boiler.
Shown is one way of piping it.