"When I last saw him he was dying, but now you'd hardly know he'd been ill"

Solution 1:

You've got it backward: CGEL is saying that for some speakers bare he was dying entails his subsequent death, because dying is a process which ends in death. These speakers insist on something like he seemed to be dying—which evokes a contrast between the "seeming" and the reality—to change the entailment into an implicature.

Here's the relevant excerpt:

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The Cambridge Grammar of The English Language (Huddleston & Pullum 2002, p. 122).