OC2H5 being next to a carbonyl makes an ester. Esters are decent leaving groups, when you protonate that O it becomes a great leaving group. But in this case, since the incoming nucleophile is so damn strong it doesn't really matter. Grignard will ALWAYS attack twice to a carbonyl unless it's stated 1 equivalence of it.
Hence, that's why you get the t-butyl alcohol. O- is just protonated by the acid work up in the end.