The reason you add yeast to the bread is to not only create air pockets and give rise to the dough, but to also create more flavor. The yeast itself and its by-products flavor the bread and make it taste better.
By knocking down the air from the first proof, you’re prevent big empty air pockets and kneading it re-shapes it and works the yeast around some more before the next or final proof.
This is also the reason why cold fermentation is a popular method for things like pizza dough. Because it allows the yeast more time to build those flavors.
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