I'm not sure if it's my own misunderstanding or if the paper [0] has something of an error. Section 3.1 starts out to the effect "let x be on the unit hypersphere" (but I'm fairly certain it's actually not). Neither algorithm 1 nor algorithm 2 show a normalization step prior to rotating x. Algorithm 2 line 8 shows that the scalar returned is actually the magnitude of the residual without accounting for QJL.
Anyway I'm pretty sure the authors inadvertently omitted that detail which really had me confused for a while there.