I was reading papers 1 and 2 on numerosities. These present a way of comparing the size of sets as equivalences of the size of the set intersected with finite subsets. I am trying to extend the work of these papers from subsets of the real numbers to subsets of the surreal numbers. However, I am having trouble understanding how the labeling system from 1 became the system in 2. I understand it is due to needing uncountable sets, but I do not have any intuition behind it.
The first paper defines numerosity as follows: $l_A:A \to \mathbb{N}$ where $l_A$ is finite to 1. Then define sets $A_n=\{ a| l_A(a) \leq n \}$, and then num(A) is an equivalence of the sequence $|A_n|$ on some ultrafilter of $\mathbb{N}$.
The second paper defines numerosity as follows: Take some base set $A$ and make a universe $V(A)$ where $V_0(A)=A$, $V_{n+1}(A)=V_n(A) \cup P(V_n(A))$, and $V(A)=\bigcup V_n(A)$. Then let set $L$ be the set of all finite subsets of $V(A)$.
A label set $B$ is a label set if For all $s, t \in B$, their union and intersection is in $B$. For all $s \in B$, $s \cap L = \emptyset$(This means that s contains only infinite sets and atoms). $\bigcup\limits_{s \in S} V(s) = V(A)$ The largest possible $B$ which contains all finite subsets of infinite subsets and atoms is called $B_{\max}$
The label function for a label set is $l(a) = \bigcap\limits_{\mu \in I_a} \mu$ where $I_a = \{\mu \in B \mid a \in V(\mu)\}$
And then num($E$) = $\lim\limits_{\lambda \uparrow V(A)} |E \cap \lambda|$, where $\lim\limits_{\lambda \uparrow V(A)} \phi (\lambda)$ is an equivalence of functions over an ultrafilter of $L$, which is implied to be $B$ but I'm not sure.
My main question is, how does this new definition actually allow uncountable sets, and how is it related to the first definition?
The paper outlines a method of closure that is a label set, namely for a directed set $D$, $\overline{D} = G(\{s \in B_{\max} \mid \exists t \in D, s \sqsupseteq t\})$, but I'm not entirely sure what $\sqsupseteq$ represents (its Definition 2.13), or how to choose $D$. My secondary question is, how do you produce a labelling set, and therefore function, that has a specific property?