John Mclaughlin establishes the Dm7 tonality and then chromatically slips into the altered sound with the EbmMaj7. The Eb note then resolves up to the E natural. The resolution is finally established the F major arpeggio to create Dm7.
In the next bar John employs Db Lydian Harmony over the G7b5 chord. [The b5 of G7 of course being the Db note]. John keeps the G natural note to establish G7 and at the same time establish the #11 of Db harmony.
John Mclaughlin Short ii V I Jazz GuitarLick:
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