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There's also a difference in US and Europe conventions. In Europe, there's typically a 2-year MS followed by a 3-6 year PhD. In the US, these are typically combined into a single 5-8 year PhD program. So an "all but dissertation" phase in Europe is the entirety of the program, it's only the second (and most important) part in a US program.

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Yeah, and so if you skip the masters then day one of your PhD is the start of your dissertation.

I though dissertation referred to the final written document you had to produce to get your PhD. Most people I know with PhDs stared writing that during the last year of the PhD program.

When you're writing papers during your PhD you're basically writing chapters of your dissertation.

In practice in the U.S. the early part of a PhD program can be very similar to a master's. It's relatively common for people who leave PhD programs to walk away with a master's degree they didn't intend to get. It's called "mastering out."

Yes you can also leave with an MPhil in the UK if it goes wrong.

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