The purpose of the dilution is to precipitate the silver chloride that may be dissolved in the strong acid. After dilution, the silver chloride can be filtered out. If you don't do this, the silver chloride can contaminate the precipitated gold during the rinsing (dilution) stage. Early in my career, I did some experiments to determine the amount of dilution needed to prevent this contamination. I found that a 3 to 1 dilution was most effective. At that point, the curve leveled out and continued dilution did not precipitate much more silver chloride. Therefore, a 5 to 1 dilution can be overkill, unless an excess of nitric has been used. All it does is create a larger volume of solution that must be filtered.
When excess nitric has been used, it is possible to dilute the solution enough (some say 10 to 1) to allow the gold to precipitate. However, this causes much more filtration and slows down the process. As I've said many times, the trick to all this is to never use more nitric than is needed to dissolve the gold.