Hi Georgina,
Mermins puzzle is a description of the SG entanglement experiment, so we are talking about the same experiment. Only that Mermin handles the whole experiment as a kind of black box and invites us to figure out what the inner workings of the box are to produce the reported results. Moreover, he challenges us with his suggestion that there is no way to classically, mechanically explain the results.
The angles 0, 90 and 180 degrees always refer to the magnets' orientations relative to each other. As you can imagine, one can turn one magnet around its axis by 90 degrees, leaving the other magnet unchanged. This then would result in a relative angle of 90 degree between these two magnets.
"RE. "Though by probability still giving each same/matched state outcome 1/4 of the time. " I added 'each' to make clear for up/up and for down/ down. As you say 1/2 for both."
The 1/4 are exactly the case when the relative angle is 90 degrees.
But this is not the same as Mermin's case b) - read Mermin's paper here:
https://www.informationphilosopher.com/solutions/scientists/mermin/Mermin_short.pdf
Mermin's case b) is for the case of a relative angle of 45 degrees (or alternatively 315 degrees).
Mermin's puzzle confronts us with the assumption that each particle has a set of instructions that tells the particle how to react when switch 1, 2 or 3 is on. The switches symbolize the 3 possible measurements axis' x, y and z in the SG experiment.
His case a) is equivalent to the 180 degree case of the SG experiment: both spins either are up/up or down/down.
Mermin's conundrum is (although he doesn't mention a Bell curve or orange or red lines) that fixed instruction sets should produce the red line depicted in the plot i gave you (or the blue line of the plot here: https://en.wikipedia.org/wiki/Bell%27s_theorem#/media/File:Bell.svg).
But Mermin's devices produce the orange line (or blue line for the wikipedia picture) - and that is not compatible with a fixed set of instructions.
You are right that Mermin's conundrum - at first sight - only applies to the assumption that there are fixed instruction set in play. Take the wording "instruction set" as equivalent with "physical law". The particle has a magnetic moment with a certain orientation. the physical law is how this orientation is altered when a well defined influence acts on that magnetic moment directly (or alternatively on some other property indirectly which in turn again acts directly on the magnetic moment). So your scheme aims to explain the Mermin-cases a) and b) by instruction sets (means physical laws that dictate how the magnetic moment should be altered when influenced by a certain amount of force from the magnet).
The essence of Bell's considerations is that a theory without fixed instruction sets is physically impossible - except for the strange world of quantum mechanics. Whatever mechanical, physical forces along the chain of events produce the Bell curve, it must be instructions how to react when a particle's property x in a state of orientation y relative to a magnet encounters a force z of some environment (the magnet). I think you would agree on that, otherwise we are left with randomness in your scheme.
Since your scheme explains things by a pre-existing magnetic moment that can be changed via a measurement, it is in conflict with the assumption that the particle does *not* have a definite orientation prior to the mesurement.
What is this conflict? the conflict arises about whether or not particles have well defined spin states (up or down) in all 3 directions prior to a measurement. It is possible to *imagine* a scheme like yours where these spin states aren't detected but altered via measurement. But nonetheless your scheme says that until altered via such a measurement, the spin orientations remain unaltered. This does mean that they are unaltered between their production at the source until they are "measured" for the first time.
The question now is in which direction around the axis of flight these spin orientations leave the source. If these orientations are evenly distributed around 360 degrees in a statistical sense (but surely pairwise always correlated), how can a fixed set of two magnets in a row (means they are oriented identically in space) always give anti-correlated results (means up/down or down/up, but never up/up or down/down)? To assume that the source prefers only one direction around the axis of flight is evenly absurd. So both possibilities are likewise absurd and that is another reason why the orthodox interpretation of QM says that the particle's spin orientations aren't predetermined by the source until measured for the first time.
Hope that clears some misunderstandings.
Greetings,
Stefan