But you have tilted the control orbit to make the tip path plane try to follow it. Although the rotor disc is inclined forwards, the blades are still flapping relative to the control orbit (as that is what dictates each blades pitch angle) not the horizon.
Therefore the retreating blades are flapping down with regard to the control orbit even though they appear to be going up with regard to the horizon. How else do you explain the high AoA on the retreating side (which we know is true) and the phenomenon of retreating blade stall?