How can Graphite powder be both abrasive, AND used as a dry lubricant?

Hello! This newbie is NOT a materials scientist, I’m a retired doctor with a late BSc in motorsport engineering. I build my own race engines and use Graphogen as an assembly lubricant, and I’ve used graphite powder as a dry lubricant. But now I read that machining solid graphite rod produces highly abrasive dust!
Will some one explain please how the same material can be both abrasive and a lubricant?
JOhn

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