Forward voltage drop on rectifier diodes: 0.7V.
The reason for the rectifier is to serve as input to an optocoupler. The H-bridge serves to send a square wave ac signal to sensor probes. When open (no liquid), the full voltage is forwarded to the rectifier, subsequently to the optocoupler. When closed (ie sensor probes shorted, liquid present) no voltage is present and optocoupler not activated.
When the optocoupler is not activated it serves to send signal to controller to activate whatever. There is no issue with the spikes when the optocoupler is not activated, so not to bad in that respect, but I would like the signal to be clean too when the optocoupler is activated, if only not to perturb the anxillary components.