1. Because as you add magenta you progressively reduce the impact of the stain, since the green part of the emulsion is less and less in play. This reduces or eliminate shouldering, but the rest of the curve is not affected.
2. It is not that all green light is blocked by a #3.5 filter, but that as you increase the amount of magenta more and more, more green light is blocked. At 3.5 a very great percentage of the green light is blocked, but you have to go all the way to the highest number to block close to 100%. However, at 3.5 the blocking is already so great that the yellow/greeen/brown stain of the negative is no longer in play, I as mention above.
I have run curves on this and when you get to filter #3.5 with VC papers the curve is virtually identical to what you would see with a graded paper that has only sensitivity to blue light. That is, there is no shoulder compression that can be contributed to stain.
Sandy King