The idea of large nuggets “growing” in the ground is largely discounted. Studies of the crystalline structure of large nuggets has shown that they form at hot temperatures 300 To 400 Celsius. This discounts the idea that they formed in a molten state and also that they formed in the ground where temperatures would be much cooler. It is consistent that gold was deposited in reefs from hot mineral and metal rich fluids simultaneously with quartz and other associate minerals.
Also the terrain in the goldfields over its geologic history been subjected to probably thousands of vertical feet of erosion to the gentler slopes we see today. Most of the gold we find today has been deposited in later epochs of that history so we would not likely see nuggets careening down steep hillsides.
Bradford in his memoirs has lots to say about the situation of nuggets at specific places in reefs when encountering indicators in the host rocks. Certainly some points of a reef are more nuggety than others and large masses of gold weighing up to 1000 ounces have been discovered by reef mining, so there is no argument that reefs would deposit large nuggets as well as fine gold Into their immediate environment.
It has also been noted that large nuggets have been found in gullies at the point where that gully crosses a gold bearing reef eg Shoots gully.
There was no reef line noted were the Welcome Stranger was found, the nearest, Black reef, being about one hundred meters away. But then not all gold is derived from vertical reefs, with much Nuggety gold coming from almost flat side reefs. Moliagul was noted for its flat reefs and the best recorded example was Snow and Liddells about 500 meters away and on a similar geologic line. Mining on that reef was conducted by following the indicator to where it encountered a flat cross reef where nuggety patches were encountered.
If the Welcome stranger was derived from a flat reef (evidenced by much quartz still attached to the big nugget when found), the reef would have long disappeared leaving the massive nugget to lay on a surface many feet, possibly hundreds, almost directly below its original position.