The given function is clearly only defined over naturals. In the first part using bits, there's no indication of how to encode negatives, and in the second part with the sum equation, f(-1,-1) >= 0 (and thus not equal to -1) for any reasonable definition of the modulo function paired with any `b`, which breaks one of the stated identities. In fact, that's true if you replace mod with _any_ function.
> The given function is clearly only defined over naturals.
The post doesn't specify. Programming languages do define it over the negatives, however. I just didn't want anyone going into python and asserting that a & b >= min(a,b).
> there's no indication of how to encode negatives
Just do the standard thing: use 2s complement arithmetic [1]. More concretely: set b to infinity and take the limit under the 2-adic metric [2]. For example, -2 & -1 has partial sums 0, 10, 110, 1110, 11110, etc. It's limiting to ...1111110, which is the 2's complement representation of -2.
Excellent. I'm glad we agree. You'll notice that the stated identity f(x,x) = x fails to hold over x < 0. I hope this is sufficient to make it clear that the equation does not consider the negatives?