Hi Michael,
The method you describe for the actual glossary entries sounds correct: uncontracted braille for the foreign language entry words and appropriate accented letters for the foreign language (BF21.6.3.b and c). This is currently called Method 3 in the Provisional Guidance for Transcribing Foreign Language Material in UEB, though the specific name/method number may change when the Guidance document is finalized.
I would like to clarify that Sample 20-4 in Braille Formats is NOT actually in Method 1. It is simply an English pronunciation key. There are no foreign or anglicized words, and the letters with diacritical marks are not foreign; they are UEB symbols. It is still the appropriate example to follow for the English portion of your pronunciation key, because the words in most of your key are English.
For the Sounds in Foreign Words section, the Symbol column would use UEB for the pronunciation symbols, as with the rest of the key. For the words in the Examples column, I recommend using uncontracted braille and the appropriate foreign language symbols for the accented characters ("Method 3"), since they will appear this way if/when the reader encounters them in the body of the text. The German o-umlaut ⠪ and u-umlaut ⠳ (found in World Braille Usage, p. 182) would be listed on the Special Symbols page.
I hope that helps! Let me know if you have any other questions.
Best,
Rebecca