TOPIC: Server Setting - yapf.rail_firstred_twoway_eol = 1

Yes but then the line backs up with trains. With the overflow, it forces excess trains into a depot and off the track so that the non-goods trains can deliver cargo to the station.

I'm using your example for the station where the goods are dropped off. There is no need for an overflow at a drop off station.
goods drop

To me it seems like a very messy way of sorting it out. Simple answer is not to have cargo in AND out on the same line. You have waypoints in place, best idea is to use them properly to direct trains to where you want them to go. If non-goods trains are being blocked by goods trains that suggests a bigger problem with the network design than just needing an overflow.

I guess we should all just play the game the same way.

taking in care all arguments above: the server setting change it's doable - only can't be done while server is running (needs a full shutdown/restart). Since server K1 (17) takes his time to goal is reached, I'll ask other admin opinions about it

Just a note: path block signals will ignore this setting. So anyone using PBS will not experience any changes (in my original screenshot, I messed up the placement of the one-way PBS; it should come before the block signal, not after). I believe the only ones who will even notice the difference that this setting makes are people who know how to make use of it.

I don't think you are using block signals correctly, judging from SS in the first post.