1/4 In/Out

"If the 8-dancer formation can not be bisected in the aforementioned
manner, work relative to the center of the set."

It's not really clear if this refer to both the Diamond and the T-bones
below it. At least it refers to the Diamond. However in this case you
don't work relative to the center of the set. You work toward the center of
your half of the set (as stated in the CL definitions) as you have
illustrated. I guess there is another Diamond as well. 
At least you can bisect the set into 2 Diamonds.