Does look like someone was confused. It does say "5V" yet the LED can't be a drawing-error and I expect 6.7V (6.9V no real difference).
> a lot of digital chips which rely on an accurate 5V rail...
I dunno. Most digital does not need an exact voltage, only that it be _steady_ and not far off.
Older CMOS all worked fine at 18V.
TTL is more fussy, but in small systems it can run on 4.2V, and (they won't admit this) it usually won't blow-up at 7V. (7.3V may be instant death.)
> power for the digital stuff goes through R3
Yeah, but 6.9V-5.0V drop in 22 ohms is 80-some mA, which is a LOT for a thing with a battery clip.
If you are still unsure, I see little harm in shorting that LED to get 5V.