in case it's helpful, the way i think of this is that the diagram of relative categories
$$(M,W)^{op} \times (M,W) \xleftarrow{\approx} (M^c,W^c)^{op} \times (M^f,W^f) \xrightarrow{\underline{\mathrm{hom}}} (s\mathrm{Set},W_{\mathrm{KQ}})$$
presents the hom-bifunctor
$$ M[[W^{-1}]]^{op} \times M[[W^{-1}]] \xrightarrow{\mathrm{hom}} \mathrm{Spaces}$$