Solution: Whirlwind

HINTS:

(Stuck at figuring out they need a passage) "I'm amazed that you've gotten so far on the hunt and still can't figure this out. Words fail me."
(Stuck at figuring path) "Telling you the words would take the fun out of it. The rules are straightforward: many corners, no extra letters, no diagonals. The words are arranged by their second letters, then alphabetically (e.g. cat hamster dog mouse).
(Stuck at compound words). "Sorry this puzzle's given you such a headache. Why don't you come on down to headquarters so we can get a headcount and order pizza? As a guideline, we should order two pieces per person until the deadline. Never mind your waistline!"

CLUES IN INTROTEXT:

Title: Whirlwind (whirl and wind, compound word, you're winding around)
Paired bedrock squares: Two squares pushed together, compound words

SOLUTION:

Organize columns into 2 7x7 squares
Use clues in intro text and title to make word passage through each letter grid
Pick out words from grid passage
Clues in intro text suggest compound words
Find word which fits all words in grid as part of a compound word, repeat for second grid
First grid: AIR, second grid: SICK; answer is AIRSICK.

PATHS:

First square: bag, base, fare, bed, head, line, plane, lock, port, brush, stream, gun

Second square: car, water, heart, sea, dog, home, love, guilt, sun, green, iron, train

COMPLETED GRIDS:

B A G E A M N
S A B R T G U
E R E H S B T
F A B S U R R
H D E C K P O
E L I O L E N
A D N E P L A

C A H E S U N
W R R A T L G
A T E R U I R
A E S T G E E
D O O V E N I
H G L T N O R
O M E R A I N