If you are adding n terms using an adder tree, the 1 feeds to the carry in of the next level ( it is simply a concatenation since the carry term is shifted left by 1). Only thw final carry propagate adder will have the add with 1.
I think that the +1 is accomplished simply by setting carry-in on the adder for that term, so you don't need a separate adder. (Disclaimer: I haven't looked at that part of the circuit yet.)
Another interesting question is how sign extension is implemented for a negative term. The problem is that you're adding 64-bit shifted terms to create a 128-bit result. When negating a 64-bit term, all the unused bits to the left need to be set to 1. But the chip doesn't do this. (Among other things, the adders would need to be much wider than 64 bits.) So it must be using a trick for the sign extension.
