The circuit diagram isn't at all easy to read. There are some useful comments about how to draw circuit diagrams here:-
https://www.electro-tech-online.com/threads/rules-for-drawing-readable-schematics.144863/
The large schottky diodes that are used as a cut-out will generate quite a lot of heat and will need a big heat sink.
The AP34063 is used to switch on and off the field, so the basic idea is OK. The AP34063 switches the base current for T1, and the base current is limited to around 70 mA, so the maximum field current is about 3 A due to the gain of T1.
The layout of the 6V/12V switch isn't clear. It should be open for 6 V, which disconnects R9.
Also, the relay appears to just completely by-pass the regulator. When the generator runs, the relay will operate, and will connect the armature to the field, which will make the dynamo run at full output all the time.
It's not easy to get a dynamo regulator to work. You should read this thread:-
https://www.electro-tech-online.com...r-universal-digital-voltage-regulator.159967/ I suspect that the design didn't control the dynamo correctly, and the relay was added to bypass the regulator. It would give the appearance of working, as the relay would turn off when the dynamo stopped working at tick over. However, with no regulator, the battery would be overcharged when driving on the highway with little electrical load. Of course, dynamos would always do that to some extent, and overcharging would take some time to be noticed, so the user might be fooled into thinking that they had a working regulator.
Making a circuit that is switchable for +ve or -ve ground is very complicated when working with 40 A. I would not recommend it.