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Smithsax, although I maybe completely wrong
wrt the extra clue
1) it only clues the 2 letters
2) Correct, and the final instruction is key

There are 6 new squares (I had 7 for a long time before I learnt to count) and the first arc isn't where you have it. But, I repeat, I may be very wrong!

And I forgot to say, if I am correct, the resulting 4 letter "word" is not a word, but a homophone relating to something that I normally ignore.

Oh dear. I think that puts it in the too hard category for me. There are 8 possible ways to fulfil instruction 1. I thought I chose the obvious one. The sixth word of the second instruction and the penultimate word of the last I took to mean start and finish - but now you have me wondering in which direction we are travelling. Finally if the “clue” is just wordplay for two letters without a definition it is not a clue in the normal sense but just a hint to GWIT.
I think I will have to mark this on as my first fail in quite a long while.

smithsax - the final clue DOES have a definition. And it has wordplay for 2 letters. The answer to this clue IS a real word.
If you have the full set of instructions from the 1st/3rd letters of the 'extra words', then you will know that you have to add something in one of the 'added squares' mentioned.
Does this tell you something about the answer to the extra clue - and what '4-letters' might really mean? the preamble does say that you can't enter the extra answer until you have obeyed the rest of the instructions.
Sorry if this is still obscure; trying not to be over-specific.

Where to start with this one?!
Firstly I am strongly in agreement with Iratus (#54) that the 6th word of the second instruction is entirely inappropriate. If you look up the 4th and 5th words of that instruction in Wikipedia, it quickly tells you what that specific word means in this context, and that is not how it is being used in this puzzle - quite the opposite. I suspect I may be one of many to have have wasted a fair amount of time being misled by that.
Secondly thanks to Wolfgang (#27 & particularly #40) for getting me over the line on the extra clue.
Smithsax - If you want to narrow down your possibilities, you need to think outside the box, if you get my drift. That should point you to fulfilling the 3rd instruction. The extra clue contains wordplay (3 words) for 2 letters of the answer and a definition (2 words) for the 4 letter answer.

Smithsax, I am so sorry. Now I have the correct order of the extra clue there is a very fair definition in there. And, I have grow in confidence in my solution to the instructions!!

OK. Thanks everyone. I got there in the end. It turns out my assumptions in #60 were pretty much correct. My problem was I took the last two words of the last instruction to mean the square containing the smallest arc. It seems to mean the square below.
I must learn to read all the words in the preamble carefully AS the smallest can be very significant.
I still think my first arc is drawn in the existing grid perimeter which does not really count as a new square.
Just as well I am not too precious about runs of successes (any more). I don’t think I can call this a completed puzzle after asking for help here.
Thanks again all.

It doesn’t say the arcs should just be in new squares does it?

No but it says we should have the same number of new squares as arcs. 5 of my arc containing squares are definitely new - but the first is drawn in a pre-existing square in the original grid.
Minor point as there is nothing to stop you drawing a square around the original 13x13 grid and calling it new.

It says you add six new squares and six arcs - that’s what you should have done.

It doesn’t say the six arcs go in the six new squares