Yeah it just puts the content in the guide in blocks that match the durations.
As far as it starting episodes in the middle, I’ve seen this when a show is paused, or the device is turned off while in the middle of it (or anything else that interrupts playback). The episode will continue when you return or unpause, but Since the virtual channel is “live”, you’re now “behind”. When that episode ends, it “catches up” to match what is on the guide. Since you were behind, you’ll miss as much of the next episode as you were “behind” in the previous one. Hope that makes sense.