It again proposes to the node D, and again D prefers A to B, so the edge between A and D is going to replace the edge between B and D. So now we again have 2 on hatched men B and C, lets say we pick C next so C gets to propose to what ever women it wants and D is its favorite but it is already being rejected by D and in the algorithm men will never re-propose to a women who has previously rejected him. 