I was wondering what that was trying to do. My first guess was that it was breaking out of the stuck-at state, but I didn't take the time to verify that.
I would normally avoid that wide input gate by using the system reset signal.
LFSRs with a good polynomial go through 2^N-1 states. It's normally not worth the effort to try to get that one extra possible state. If you want more states, it's much simpler to use a slightly larger polynomial. Each extra FF adds 2^N more states.
If you really want all 2^N states, I think it takes 2 clouds of gates or one cloud with an extra FF. The first cloud of gates detects a particular state and forces it into the otherwise missing state. The second cloud detects the missing state and forces it into the state it would have gone to if you hadn't done anything fancy. You can trade that second cloud of gates for a FF that remembers that the previous step was the special case.
Again, if you want more states, it's much simpler to use a bigger LFSR.