You can rest assured that a hose that short from cyl to valve is going to get a fresh supply of fluid each time you cycle the cyl.
The old fluid from the cyl has gone to tank after one cycle.
Hypothetically if you only use micro movements of the steering, the fluid might not exchange for a while, but I can bet that you do go full rotation sometimes.
I don't know if your hyd system is close to mine, but if the volume of fluid in the cyl is more than the volume in hose to the valve, it is going to add and exchange be it a little at a time if you.
It is not a closed loop system, and nobody would design it that way with a logical mind.
Say the cyl at full retract has 1 oz of fluid in the vase end, and say the hose to the cyl has 6 oz of fluid in the hose, then to fill a 32 oz cyl, you get to add 25 oz of new fluid from the valve which has new fluid from the pump.
Don't know more that I can say.
I would say that the dark fluid in your cyl was contaminated.
2 in bore
1 in shaft
16 in stroke
Volume extended .2175 gal
---------retracted .1631 gal
Your 37 in hose contains about .0176 gal
Can you not see what will happen?
Your cyl contains way more than the hose, so it is gong to exchange/add each time.
If your steering cyl is 3 in bore, the volume will be greater
Cylinder Calculator: Hydraulic cylinder valume capacity