The correct placement of the fourth step is down the LOD, curved maybe a foot width to the wall, with the toe turned a bit more in so that while the weight arrives on the outside edge it goes immediately to the inside. When first doing this one must be carefull not to outstep the lady - the man is on the inside of the turn, and it's always easier to take a larger step backwards than forwards anyway.
There is no need to step ones entire body out of the way if proper CBM is used *before* the foot is placed. This turning of the body makes room for both bodies to pass sideways through the same space. Only if you are so unwise as to keep your body square to your feet must you step out of the path of your partner. Yes, many dancers today are not learning how to do CBM, and so end up doing this.
Also be careful in the analysis of Stephen's natural turn. Yes, his body is facing to wall as the first step is placed, but his nose and toes are still diag wall, because he is actually moving on a comparatively straight path - the turn of the body is not matched by a turn of the feet or change of direction, rather that happens over the second step. This is a result of doing the CBM at the proper time, and not delaying it as is currently in vogue with some of the IDSF couples who lack the flexibility to use their body and feet seperately.