Issue 8574 - chore(docs): Build out V1 and V2 documents from provided requirements

[nbintertech]

… vs actual implementation. Update existing documentation. Annotate code operations with respective algorithm branches/cases

Pull Request Template

Checklist

• Variable, function, and class names are descriptive
• Code leverages existing architecture, helper methods, and shared modules when applicable
• Development artifacts such as console logs, test values, and comments have been removed
• All Copilot, Claude Code, or other LLM implementations have been reviewed as if contributed by another developer
• UI changes have been manually tested for usability and appearance
• This PR references the related issue number (if applicable), ex. issue -> #0000

Description

• For development team: Optional. Update the issue with a comment, if necessary.
• For open source contributors: The PR description clearly explains the purpose and scope of the changes

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#8574