From another version of the Fall of Gondolin:
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There Tuor slew Othrod a lord of the Orcs cleaving his helm, and Balcmeg he hewed asunder, and Lug he smote with his axe that his limbs were cut from beneath him at the knee, but Ecthelion shore through two captains of the goblins at a sweep and cleft the head of Orcobal their chiefest champion to his teeth; and by reason of the great doughtiness of those two lords they came even unto the Balrogs.
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Since I believe this version was not as old as the one you are talking about I take this information as more likely since Tolkien didn't change for nothing.
As for your question:
When Men die they goe to the Halls of Mandos where Nienna gathers them in her hall Fui, from there they are send aboard Mournië after their final judgment and they sail now south to the destination of which only Eru Ilúvatar knows.
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"Then when she is laden, of her own accord she spreads her sable sail and before a slow wind coasts down those shores. Then do all aboard as they come south cast looks of utter longing and regret to that low place amid the hills where Valinor may just be glimpsed upon the far off plain" ~ from the Earliest Tales
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