It is good to see GAM to start explaining how other exchanges will be able to test FLEDGE API when publisher is using GAM, as it was a request from the industry for a long time now. However, I am still unclear how this will work exactly.

The explainer mentions a new API part of GPT tag:
Slot.addComponentAuction(seller, AuctionConfig)

Other exchanges can submit their auction config through this API to GAM, which will in turn use those to populate the componentAuctions field of the top-level AuctionConfig.

Then, the explainer states:
"Ad Manager will compare the bids of all sellers and the best contextual ad selected via dynamic allocation, and will serve the ad with the highest bid."

This part isn't clear. How will Ad Manager "compare" the bids of all sellers and the best contextual ad, since all fledge related bids (both top level and component) are obfuscated and can only be evaluated within the fledge auction.

Will the contextual bids be passed into the top level fledge auction as component ads as well?