The retainer clip moves back into its groove due to the ends of the splines being chamfered, when you force the axle and inner joint apart. This occurs whether a hammer is used, or the axle bolt is used as a puller. To your questions: (1) The circlip is all that keeps the drive shaft from moving away from the inner race. (2) the circlip does stay in its groove on the shaft after removal.
The axle bolt does need to push in-line with the axle, but it pretty much will naturally as you begin to tighten the bolt in. And no need to "compress the stub axle", just hold the CV body to keep it from turning while you tighten the bolt.
The axle bolt does need to push in-line with the axle, but it pretty much will naturally as you begin to tighten the bolt in. And no need to "compress the stub axle", just hold the CV body to keep it from turning while you tighten the bolt.