I'm looking at 2.43B of the 3rd edition and I think the authors are clearer in the text than in the diagram.
Note that the text says \$\frac{R_S}{\beta+1}+r_e^{\;'}\$. Note that the diagram says \$Z_{_\text{OUT}}=r_e^{\;'}+\frac{Z_{_\text{IN}}}{\beta}\$. Not quite the same thing, but almost. Perhaps the authors might have better written in the diagram that \$Z_{_\text{OUT}}=r_e^{\;'}+\frac{Z_{_\text{IN}}}{\beta+1}\$ and that \$G=\frac{R_{_\text{LOAD}}}{R_{_\text{LOAD}}+Z_{\text{OUT}}}\$. In the diagram, I think they were neglecting the term \$\frac{Z_{_\text{IN}}}{\beta+1}\$, as being negligible, when writing out the equation for \$G\$. That isn't always the case. In the text, they got the details in place but then didn't follow up to compute \$G\$.
(Here, I'm using \$r_e^{\;'}\$ instead of \$r_e\$, as \$r_e\$ is often the model parameter indicating Ohmic resistance at the emitter pin for a BJT and this is not the same thing as the dynamic resistance, \$r_e^{\;'}\$.)
The upshot is this: The source impedance can be reflected to the emitter by dividing by \$\beta+1\$, just as the emitter impedance can be reflected back to the base by multiplying by \$\beta+1\$. It's just two different perspectives of the same thing, depending on what you are looking to figure out. \$r_e^{\;'}\$ resides on the emitter side of this reflection and in series with it. So if you are reflecting backwards from the emitter back to the base, then you take \$r_e^{\;'}\$ in series with whatever is appropriately in series with it at the emitter before reflecting backwards. (Once reflected back, the term \$r_e^{\;'}\$ is often then called \$r_\pi\$, rather than \$\frac{r_e^{\;'}}{\beta+1}\$ which looks more complicated.) And if you are reflecting forwards from the base towards the emitter then you first reflect the base source impedance by dividing by \$\beta+1\$ and then add \$r_e^{\;'}\$.
\$r_e^{\;'}\$ itself is always computed using \$r_e^{\;'}=\frac{\text{d}\,V_{_\text{BE}}}{\text{d}\,I_{_\text{E}}}\$ from the active mode BJT equivalent of the Shockley diode equation (or better, as found in one of the three non-linear Ebers-Moll models: transport, injection, or hybrid-\$\pi\$.)