Like I said before "with them both not earthed it is saying that there is an overboost situation as well as a need for a richer mix. This is why the fuel stops.
If you have fuel enrichment only the engine wil keep running just like if you only have fuel cut it will keep running."
BUT, not all the switches are normally open. The diagram is wrong.
The knock control switch is normally open and earthes out when there is vacuum more than around 0.25psi.
Both PE and PC are normally closed. They cut the earth when its overboost. 2.2psi for PE and around 7.5psi for fuel cut.
So earthing these out is what you need under normal conditions. It took me a while to work all this out a while back. The diagram is a bit misleading with these switches, other than that its spot on.
This is why you will here about people that can't get their 3T GTE's running. Its usually because PE and PC are either NOT earthed out or the switches are staying open due to some fault.