The way to find out is by putting a rod of any reasonable diameter in the chuck and setting the gearbox up as you understand the instructions. Not clear are they, so could go wrong!
First paint the rod with engineers blue or felt-tip pen. Move the cutter so it just scratches the blue, and then run the lathe. It will scribe a helix that you can measure to confirm the pitch. The diameter doesn’t matter.
As an inch is a convenient distance to measure with a steel-rule, I’d convert the sum into turns per inch: TPI = 25.4/pitch
25.4 / 1.75p = 14.5 tpi
If the gearbox is right you should count 14 and a bit turns over an inch. If the count is different, the gearbox setting is wrong, so think again. Informed by how many turns a wrong setting produced may make it possible to work the trick backwards: this thread was produced by this gearbox setting, so does that line up with anything on the front panel diagram?
Repeat with a few different threads until the gearbox instructions are decoded and understood.
If scratching the rod goes against the grain, a fine felt tipped pen can be substituted for the cutter. It paints an easily removed heliix but not as well defined as a scratch on blue.
You mentioned a thread dial indicator in the opening post, and, yes they’re not particularly useful on a metric lathe. As you said the preferred method is to retract the cutter and reverse out without disengaging the half-nut.
By the way, if the lathe cuts in reverse without unscrewing the chuck, it’s safer to cut threads away from the headstock towards the tailstock. Safer, because there’s no danger of crashing under power into the chuck, and fast because you can wind up the RPM.
Dave