This is an easy way to visualize the hydraulic circuit.
-When the spool is moved to the A side, the cylinder extends and the air inside the cylinder is vented through the breather.
-When the spool is moved to the B side, the cylinder retracts and the fluid is returned to the tank for both the fluid coming back from the cylinder and the fluid coming from the pump. Air is drawn back into the cylinder through the breather to prevent a vacuum.
-When the spool is in the center position, the fluid coming from the pump is circulated back to the tank.
For the single acting cylinder, you'll need a breather on the open port and a directional flow control on the connected port so the load doesn't drop like a rock.