The equivalent depth for nitrogen loading you calculated goes in the opposite direction as it should. The depth for nitrogen loading purposes is deeper when at altitude and in this case is the equivalent of 29 ft on a normal (non-altitude) dive table.if the entrance to the cave is at 10,000 feet altitude, and the diver goes to 20 feet of water, then the nitrogen loading would be 0.7ATM of air pressure plus 0.67 ATM of water pressure = roughly 16 feet for nitrogen loading.
Think of it as multiples of surface pressure: 20 feet of water (which is actually 0.59 atm above surface pressure, not 0.67 atm) would still register as 20 feet of water on a DC because it would calibrate itself to 0 ft depth at the surface pressure of 0.7 atm (*). This makes the total pressure 0.7 + 0.59 = 1.29 atm. That pressure is a factor of 1.85x that of the surface pressure, which is what matters for nitrogen loading (and unloading).
You're correct that the inspired inert gas pressure is less than it would be at sea level, but absolute pressure doesn't matter for nitrogen off-gassing. You have to get it within a safe factor of the 0.7 atm surface pressure, which is further away than 1.0 atm.
(*) side note: if the DC does not sense surface pressure, it would display that 1.29 atm measurement as about 10 ft after erroneously subtracting 1.0 atm for "surface" pressure.