I'm fairly confident that my understanding of how AC loads luggage is correct, but what I can't figure out is how they handle bags for connections.

Generally speaking, I believe that priority bags are the last to be boarded onto an aircraft and thus they are the first to come off. However, how are bags that have onwards connections handled? I presume on Flight #1 , they are one of the last bags to be loaded onto, and once at the destination, a baggage connection runner takes those connecting bags onto onward flights. In that case, would that not stand to reason that any connection bags are also last to board as well?

The reason I'm curious is then why priority bags are always first on the carousel? Wouldn't any bags that were "connecting" bags also be one of the first to end up on the carousel?