What is the purpose of this complexity? To heat the coolant or cool the exhaust? This setup would seem to be added to a list of things to delete.
My F250 (7.3L) has an exhaust back pressure valve (EBV) after the turbo that closes when the engine is cold to keep heat in the engine and not let it escape via the exhaust. The EGR system is part of the emissions system and serves to reduce emissions by directing some of the exhaust gas to the intake after it's been through the heat exchanger.
What is an EGR System, and why remove them?
Exhaust Gas Recirculation (EGR) is a method that is used to control Nitrogen Oxides (NOx) emissions. The purpose of this system is to return a small portion of exhaust gases back into the combustion chamber through the intake manifold. Lowering combustion temperature, resulting in a reduction of NOx emissions. The issue with EGR systems is that the valve can stick open due to carbon deposits. A worst case scenario is that the EGR becomes completely blocked, this will result in poor fuel mileage and a loss of power. When this occurs, it results in engine warning lights and the equipment going into limp mode. The vast majority of exhaust gas recirculation valves power off in the closed position. This means that once they are de-energized, they are in the shut position. On a few select applications, we offer block off plates. These plates are used as a fail safe, to ensure that there is no exhaust coming back into the intake system.