Jim its kinda funny ypou brought this up. Me and a helper we talking about this at lunch today. I'm doing 5 small walls only 3blocks hight + cap around some landscape beds. In the past I have kept the lip on the first row for anchorage. The rest I usually knock the lip off so the next level can be set back a tad and all the blocks be same distance from face of the lower level. The lip gets in the way when doing curves. I asked my pavestone supplier and he told me the same thing you were told. Its mainly to help when doing straight walls without curves. I just use a roofing hammer and knock the lip off.
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