No, it is not because of efficiency bluejay, more that the method uses a thicker than normal BIAB mash and a sparge, but also does so in a smaller kettle, so reducing the water quantities while keeping the grain mass the same for the mash and boil, then the addition of water at pitching for post- boil dilution is where the volume is made up.
I use 4.75kg of grain to yield anywhere between 21 and 25L of wort (depending upon the target OG and efficiency), while fermentation and packaging losses are usually 2 or 3L, so its still a greater beer yield than the kettle volume. Its a pretty nifty trick if you're limited for space, budget, equipment etc but want the usual full- sized AG batches.
That value of 1:3 is not one I'm familiar with, are you sure you're not referring to liquor to grist (L:G) ratio? That's the usual amount of water to grain for the conventional infusion mash.