Im having trouble understanding how this switches from bypass to loop.
The schematic might help explain it, this doesn't have the tails/no tails switch but apart from that it's the same as the layout.
The first omp section buffers the signal. The signal then splits, the bypass signal goes though the two 47k resistors to the second opamp section. The signal also goes through the two 1k resistors to the send, then via the the return to the second opamp section. The second opamp section mixes the signals together and sends them to the out.
When the thing is in bypass the switch, that's the thing between the 47k and 1k resistors, grounds the point between the two 1k resistors, so no signal goes to what ever is in the send/return loop. The signal can only go through the two 47k resistors so all you hear is the bypass signal.
When loop is selected, the switch grounds the point between the two 47k resistors so you don't hear the bypass signal. The signal instead goes through the two 1k resistors to the send, so you hear what ever is in the loop.
When you then switch back to bypass, you hear the bypass signal and the signal stops going to the send, but what ever is already in the pedal in the loop still goes through the return so gets mixed with the bypass signal. This is what gives the delay tails.
This is why the wiring isn't like on most pedals, the output of the loop needs to be connected all the time so you can hear the tails. Normal, true bypass wiring disconnect both the input and output when bypassed so you can't mix in the tails.
Also can it be connected so tails is always on instead of having the 2 way switch?
If you only want tails remove the 2 way switch and the wire to it from the right hand side of the board. Connect the wire that was going to it from the left hand side of the board to the 3DPT, where the wire going to the middle lug of the 2 way switch was.