Thanks for the explanation. Does the object model have anywhere, the hidden value applied to the machine co-ordinates? Not that is will actually help me, just interesting.
I will turn off bed compensation whilst investigating my BL Touch problem just for clarity.
On a slight aside. it occured to me that, as the term implies, 'Bed compensation' assumes the error in height is due to the bed shape. If the error was actually due to the X gantry being in error, say lower in the middle), then applying bed compensation to correct it would result in other errors. It would be expected to improve bed adhesion but as the the correction tapers off the top surface of the print could be dished. I not sayinbg this needs to be addressed, just a thought experiment.