The flux coating decomposes and, with the deep cone formed by the flux, controls the arc length and the melt-off rate so the welder does not have to maintain the arc length by physically holding the "1/8 inch" arc length. The flux covering does all the work. It typically has a high content of iron powder in the flux to increase the deposition rate. The term "drag rod" comes into play because the welder leans the electrode in the direction of travel and simply "drags" the rod along the joint. That isn't really what is done, the electrode essentially determines the travel speed, the welder simple directs the electrode in the proper direction.
Like many things in our industry, there is a lot of slang thrown around that causes miscommunication. Terms like root gap, land, drag rod, dry pass, are terms that can be confusing because they are not used by all industries and there is no common denominator such as AWS A3.0 terms and definitions that includes them, nor should they be included. Even AWS committees fall victim to the use of slang in some of the welding standards published by AWS. Life would be easier if all the welding standards published by AWS used only standard terms and definitions as published in AWS A3.0 or at least included definitions of the nonstandard terms in a glossary of their welding standard. However, I see no reason for using nonstandard terms in official publications.
Other organizaations such as API use terms that are considered to be nonstandard by AWS. That's fine as long as API include a means of providing terms and definitions so the reader can "look" them up for clarification.
Inspectors that work with several different codes have to become familiar with the terminology specific to the welding standards they use. I feel it is good practice to use the proper terminology for each specific industry. For instance, even though API refers to AWS A3.0 for terminology, they use the term "land" instead of "root face". Likewise, they use different terminology for some certain weld discontinuities such as "inadequate penetration" instead of "incomplete joint penetration". There's no problem with what they are doing because API defines the terminology they are using. It can be confusing when inspectors apply the terminology from one industry to another. The person reading a report, and if they are unfamiliar with the terminology, has no means of looking up the nonstandard terms.
I believe that is what you are encountering with your situation. Life would be easier if everyone used standard terminology. Professionals that insist on using slang terms are not doing our industry any favors. Clear communication should be the goal of any inspector or other welding professional. Rarely does the use of slang terms clarify a situation. Slang only causes confusion, misunderstanding, and miscommunication.
What a rant!
Best regards - Al