Here's my take on it. She does not want you to break the yarn, so when you 'carry' the yarn over those placed on the contrasting yarn, be generous. You don't want things to look pulled or tight.
She doesn't address those hanging bits of yarn anywhere else in the pattern, but it sounds like after the sleeves are joined to the body, these can be dealt with. They will be in the armpit area, so could be cut at a midpoint and worked in there.
Hope this helps!