Just to help your thinking ....
When the engine is stopped, the battery is at 12 volts (say) but the dynamo is showing NONE volts.
BECAUSE battery volts is MORE than dynamo volts the "CUT OUT" stays OPEN circuit, and the battery live is disconnected from the dynamo live.
Now start the engine.
On tickover nothing changes as the dynamo barely charges and cannot make enough volts to be MORE than the battery.
Now start driving, and engine speeds up, so dynamo speeds up and LO!
Now it makes more volts than battery and this is good 'cos now it can CHARGE battery up, so CUT-OUT contacts are CLOSED to connect battery to dynamo D (output) and will stay connected until engine slows down so much that dynamo volts is less than battery volts which makes CUT-OUT open, and disconnect battery from Dynamo.
Is that clear I wonder ................. ?
There are now solid state regulators available these days which are probably the Bees' Bollocks.
CharlesY