Tracy, here are my thoughts on that. First of all, in LR phonics we are trying to show baby patterns, rather then teach individual words, that is why there is not much emphasis on individual words but rather on introducing the pattern, which later will help the baby to develop connections and start recognizing words he/she did not learn before.
I think it is more difficult to see immediate results whether or not those patterns "registered" so to speak, as opposed to seeing baby learning her nouns and verbs, which she can demonstrate. But I believe it works, as baby brain always scans for patterns, a good example is creating plural nouns, very often in the beginner speaker vocabulary you can hear "foots" instead of feet, "peoples", etc Not because they learned it that way but simply because they observed patterns, and applied their observation to expand their vocabulary.
Also, with nouns and verbs that are shown during the lessons, baby gets visual demonstration of those words, picture flash, word flash and example of how they are used in speech ( picture audio), -- that is why you can see how baby really "getting it". I think it simply shows how effective it is to use this approach, involving baby's various senses in word recognition. Also, I am sure you are right there reinforcing those words with your own actions and examples, like stand, and you will help your baby to stand up.
So, as far as pattern phonics I would just let her observe the patterns without trying to teach her every individual word necessary. At least not feeling that she needs to know all those words shown. These are just thoughts, hope it is a help.