In the circuit, why does my node (hi-lighted) appear to be an exit node? Or am I reading it wrong?
My exit policy is ExitPolicy reject *:*
I don't know really, but I would think that this is some initialisation/self-testing circuit. It was initiated by 127.0.0.1. When you are the Exit in a normal circuit, you can not tell who the guard and client are.
You can lookup your relay on Atlas and check your flags and exit policy.