No relationship. It's called EEL2 because it is derived from an earlier "EEL" (part of AVS) which is not the one you linked to, so it is called EEL2 both because it is a sequel and also in order to disambiguate itself from the one you linked.
Truncating to the 23 bit mantissa of 32-bit FP can result in rounding errors in real world scenarios, totally. Does it matter? Not usually. Could it matter? Sure. Does it cost much to preserve the extra precision in the intermediate states when mixing a project? No.