The 7-lug switch is just like an 8-lug switch except that the two middle lugs on an 8-way are normally linked/soldered together. This is basically done internally for you on a 7-way switch. So for your 8-way switch strip a bit more wire bare at the end (on what is the blue wire on the PBG wiring diagram), so you can poke it through from the rear of one of the two middle PCB tabs, then fold the rest of the bare end of that wire back through the middle of the other middle tab, then solder them so that the tabs now become linked.
An 8-lug switch is more versatile if you want to do some slightly more fancy options with the pickup wiring, but for standard 3-way wiring. either a 7-lug or 8-lug switch is fine.
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