when graphical analysis is on for legacy dimensions, what does this mean?
 

It is drawing the graphical analysis in the CAD window. For legacy dimensions, the only way to get the graphical analysis in the report is to use an ANALYSISVIEW command.
For FCFs, on the advanced tab there are pulldowns to turn on Cad graphical analysis (Cad window), report graphical analysis (report window), and textual analysis. For legacy there is only cad graphical analysis (GRAPH=ON) and textual analysis (TEXT=ON)

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how to remove hit deviations from report for location?
TEXT=OFF