Alan, a word of caution relative to coalescing filters. In the Target Forge video where he tested different filters on a GX CS2 and on a Yong Heng, he found the coalescing filter did nothing - no benefit at all - for the CS2. He states that he thinks it was the low flow rate of the CS2 and that he found a paper that states the coalescing filter is sensitive to flow rate. So when we add one to our systems with no ability to change the filter size or the flow rate, it may or may not work. He uses one on his Yong Heng, however. He did not test the result on the YH. I believe the GX CS4 has this type of filter.
I use a "tampon filter" first which I see you recommend to get water. It also gets oil from my YH. I agree a coalescing filter might do the same or better but I have used the stock YH filter first for a couple years now with good results.
Given the low price of the tampon style filters I think they are great for a first stage. I change the element after each tank fill (I bought a bag of 100 cheaply from Aliexpress). But I would also consider raising the filters in the pictured system to cause water that condenses in the line to flow back to the compressor where you can vent it. I vent very five minutes of run time and it is obvious water comes out.
I don't do anything special to keep my dessicant dry between runs (once a month typically with the dessicant getting used for several runs) but I have a one way valve in the output of the filter the dessicant is in. The other end of the line is connected to the YH. I think there is a one way there too but I've never checked it. I have a spare cartridge but the dessicant in it changed in less than a month even though it was in a zip lock bag. So the bag leaked more than the valves on the compressor line.