Two issues;
1. A direct entry means that at the fix, the aircraft heading is such that a turn onto the outbound track will keep the aircraft in the holding area.
Thus at the fix they turn to fly the outbound leg and at the end of the outbound leg they turn to fly the inbound leg.
2. The hold appears to be at 20 dme and the outbound leg is limited to 25 dme. There is no requirement to fly all the way out to 25 DME if one can turn inbound before that and fly an inbound leg. The 25 DME limit may be just right for a CAT C aircraft however, if a CAT A went all the way to 25 DME and then turned inbound, it could take a long time to get back to the fix into a headwind at say 120Kt.
So one is correct - on a direct entry you start a normal hold pattern at the fix.
The other is also correct - with a DME limit on the outbound leg, this is a limit and there is never a requirement to always fly as far as that limit be it an hold entry or nornal hold pattern.
Regards,
DFC