You can always dilute a beer at any stage of the brewing process
I pretty much agree with this. Except......
I had the wonderful idea, some 20 odd years ago, that I could save myself a lot of boiling/fermenting/conditioning volume by brewing double-strength ale, and then diluting it 50:50 on serving (I'm not a fan of very fizzy beer, so this wasn't an issue: anyway, it could be poured like shandy)
Of course, it worked. But, I didn't like it nearly as much as my normal-strength brew. It was drinkable, but lacked the precise taste that I was aiming for. OK, this might depend upon the yeast and the precise fermentation conditions - but my "double strength" beer, when diluted, tasted nothing like its "single strength" counterpart.
But that's serving, not brewing. Boiling (probably) 18l of wort, then diluting to 25l in the primary FV works fine for me. Then, after maybe 5-7 days in FV1, I'll rack to a secondary FV. At this stage I'll dilute again to 28l (to minimise headspace) and add the dry hops. Once fermentation has slowed, I purge heavily with CO2 at every exchange.
Works very well for me.
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