I do not understand this 4 Wire Test Jig

I'll borrow funtastic's picture, and placed some labels.

When inserting the battery, the battery has to touch *both* the "center pin" (voltage sense) and the bigger cone (current), which means you'll need to slide the battery tight enough that it holds into place without falling.

I doubt it fits 21700 battery though.

(I'm looking for something similar that fits 21700 battery (if possible, protected 21700, but if not possible, fits unprotected 21700 is fine; preferably supports up to 10 Amp load, better is maybe up to 15 Amps). Haven't found one yet though)..

You may want to refer to this message thread for some related info.