Feeding negative voltage to LM338 ADJ pin, what is the voltage?
The circled point is not tied to ground, the two wires are just crossing. Wires that join are depicted with a dot on the junction as can be seen in several places in the diagram. If you think about it, there would be no point in joining the wires inside the red circle as it would short out the 1.2V LM113.

What may be confusing you is that there is no need to draw the horizontal wire from the top of the LM113 to the right, it does nothing.