Thank you very much for following up. The reviewer is correct that if we wanted to ensure that the cost of the agent located at $x_L$ remains the same in that last change in the distribution, then we would need to depend on where exactly $x_L$ lies, which would be problematic. However, note that **the cost for the agent at $x_L$ is actually not maintained during this last change in the probability distribution**. As Line 253 mentions, the cost of the agent located at $x_L$ can increase (thus hurting the agent for misreporting their true location). It is only the expected coordinate of the facility location returned within $(x'_L, M')$ that is maintained, which does not require knowledge of $x_L$, and this expected coordinate is exactly what our reduction maintains.
Let us provide a different way of phrasing the argument, which may hopefully make it easier to follow:
Let $x'_L<x_L$ be the location reported by the agent actually located at $x_L$, and let $f$ be the original mechanism and $g$ be the OnlyM mechanism that we construct using our reduction on $f$. If we focus on the interval $(x'_L, M')$, the expected coordinate of the facility returned by the two mechanisms, $f$ and $g$, conditioned on the facility being in the interval $(x'_L, M')$, is the same; this is true by construction (our reduction maintains the expected coordinate between the reported location and the mid-point). The crucial difference between the two mechanisms is that although $f$ may return any facility location in the $(x'_L, M')$ interval, mechanism $g$ returns the same expected coordinate using only $x'_L$ and $M'$ in its support. Our proof shows that the cost of an agent located at **any point $x_L$** in the $(x'_L, M')$ interval is weakly higher in $g$ than it is in $f$, thus maintaining the truthfulness guarantee. Intuitively, this is true because the two mechanisms return the same expected coordinate in that interval, but $g$ only returns the extreme points of the interval, which hurt the agent at $x_L$ the most. More formally, the proof in our submission proves this intuition by first constructing an "intermediate" distribution (Line 251) which has *the same cost as $f$ for the agent located at $x_L$ and also has the same expected coordinate as both $f$ and $g$*. Then, we observe that $g$ has weakly higher cost for the agent located at $x_L$ compared to this "intermediate" distribution, because the latter may assign some probability on $x_L$, whereas $g$ instead distributes that probability between $x'_L$ and $M'$, which increases the cost of the agent located at $x_L$.
Hopefully this addresses the reviewer's concern. If not, we would be happy to provide additional details. We acknowledge that the subtleties discussed above (which, we believe, make the result technically demanding and interesting) were written too densely, due to space limitations. We would be happy to either unpack this proof further within the main body of the paper, or to include a more detailed proof in the full version or the appendix.