In the edition here (I also have a legal hard copy but not with me)...
https://www.scribd.com/document/956350280/The-Art-of-Compute...
... on page 274 the MIX jumps in lines 058 and 060 to label 3H if the tests fail, where qhat is decremented again. I'm not at all a Mix expert, but where is the counter that the loop is only executed twice?
You are absolutely right. My mistake, the MIX computed the trial quotient in step 043 in a saturated way (which was enough to control the bug, thus my comment). It does indeed loop at step 62-64 (third edition book labels). I nevertheless stand my ground on the intention of Step D3.