The key to this is to note what ISN'T on the wiring diagram. To wit, there is NO voltage regulator , in the normal sense.
The resistor acts as an unspeakbly crude voltage regulator, to stop the alternator overdoing things when the lights are off . When the lights are off, the alternator output at C1 on the lighting switch is switched to the resistor and to earth. When the lights are on, the alternator output is switched to , duh, the lights.
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