After thinking for some days, I would like to share my observations from the first answer and how it relates to binary notations and bit operations. This answer is based on the same recursion step and the same algorithm.
$$\frac{n_{k+1}+2^{k+1}-1}{n_{k+1}} = \frac{n_k+2^{k}-1}{n_{k}}\cdot \frac{m_{k+1}+1}{m_{k+1}} \tag 1$$
where $n_k$ is chosen depending on whether $n_{k+1}$ is even or odd,
$$\begin{align*}
n_{k+1} \mapsto n_k &= \begin{cases}
\dfrac {n_{k+1}}2,& n_{k+1}\equiv 0 \pmod 2\\
\dfrac {n_{k+1}+1}2,& n_{k+1}\equiv 1 \pmod 2\\
\end{cases}\\
&= \left\lfloor\frac{n_{k+1}+1}2\right\rfloor
= \left\lceil\frac{n_{k+1}}2\right\rceil \tag2
\end{align*}$$
From $n_{k+1}+2^{k+1}-1$ to $n_k+2^k-1$ in the numerators of $(1)$ is actually simple: it's a floored division by $2$, or a right shift by $1$ bit:
$$\begin{align*}
n_k+2^k-1 &= \left\lfloor\frac{n_{k+1}+1}2\right\rfloor + 2^k-1\\
&= \left\lfloor\frac{n_{k+1}+1}2 +2^k-1\right\rfloor\\
&= \left\lfloor\frac{n_{k+1}+2^{k+1}-1}2\right\rfloor
\end{align*}$$
But from $n_{k+1}$ to $n_k$ in the denominators is less obvious.
Applying $(2)$ is not simply a floored division nor a right shift by $1$ bit. Repeated application of $(2)$ to a positive $n$ will also never get to $0$. But there's still some pattern, by noting the parity of $n \pmod 2$ at each step, for example when applying to $n=10$,
$$\underbrace{10}_{\equiv 0} \mapsto \underbrace{5}_{\equiv1} \mapsto \underbrace{3}_{\equiv1}\mapsto \underbrace{2}_{\equiv0}\mapsto \underbrace{1}_{\equiv 1} \mapsto \underbrace{1}_{\equiv 1} \mapsto \ldots$$
Writing the remainders as bits from the least to the most significant, this gives an infinite binary string $\ldots1111\ 0110_2$. And one might notice this is the two's complement notation of $-n = -10_{10}$! In fact, considering how $-n_{k+1}$ and $-n_k$ are related by $(2)$,
$$-n_k = -\left\lceil\frac{n_{k+1}}2\right\rceil = \left\lfloor\frac{-n_{k+1}}2\right\rfloor$$
so applying arithmetic right shift by $1$ bit to $-n_{k+1}$ does give $-n_k$.
Hence both the numerators and denominators in $(1)$ are related by binary right shifts or floored divisions:
$$-\frac{n_{k+1}+2^{k+1}-1}{-n_{k+1}}
\overset{>>1}{\underset{>>1}\longmapsto} -\frac{n_k+2^k-1}{-n_k}$$
On the left hand side, if both the numerators and denominators were even, i.e. with last bits $0$, then the two sides would be equal. But the numerators and denominators always have opposite parity, and the $\frac{1+m_{k+1}}{m_{k+1}}$ multiplier is here to round the odd one down to even.
If $n_{k+1}$ is even, then the numerator is odd, so choose $m_{k+1}$ to reduce the numerator by $1$:
$$\begin{align*}
-\frac{n_{k+1}+2^{k+1}-1}{-n_{k+1}}
&= -\frac{n_{k+1}+2^{k+1}-2}{-n_{k+1}}\cdot \frac{n_{k+1}+2^{k+1}-1}{n_{k+1}+2^{k+1}-2}\\
&= -\frac{n_k+2^k-1}{-n_k}\left(1+\frac{1}{n_{k+1}+2^{k+1}-2}\right)
\end{align*}$$
If $n_{k+1}$ is odd, then the denominator is odd, so choose $m_{k+1}$ to reduce the denominator by $1$ (to be more negative):
$$\begin{align*}
-\frac{n_{k+1}+2^{k+1}-1}{-n_{k+1}}
&= -\frac{n_{k+1}+2^{k+1}-1}{-n_{k+1}-1}\cdot \frac{-n_{k+1}-1}{-n_{k+1}}\\
&= -\frac{n_k+2^k-1}{-n_k}\left(1+\frac{1}{n_{k+1}}\right)
\end{align*}$$
This explains why the $m_{k+1}$ appears to be quite different depending on the parity of $n_{k+1}$:
$$m_{k+1} = \begin{cases}
n_{k+1}+2^{k+1}-2,& n_{k+1}\equiv 0 \pmod 2\\
n_{k+1},& n_{k+1}\equiv 1 \pmod 2\\
\end{cases} \tag3$$
To conclude, by considering the recursion step $(1)$ with negated denominators, the choices of $n_k$ and $m_{k+1}$ are related to binary notations and bit shifts. Running the recursion down to $k=0$ gives the last $m_1=n_1$ and a fraction that can be eliminated: $\dfrac{n_0+2^0-1}{n_0} = 1$.
Omitted detail on two's complement, which is non-standard:
$$-10_{10} \overset{???}= \ldots1111\ 0110_2 = 2+4+16+32+64+\cdots$$
Either all mentions of bit shifts can be ignored and consider floored division only.
Or a fixed and finite number $L$ can be chosen to be the number of bits for two's complement. $L$ bits should be long enough to represent the numerator $n+2^k-1$ (and hence also the denominator $\pm n$).