Green’s Dictionary of Slang

pull out v.

1. [mid-19C] to exaggerate.

2. [late 19C+] to leave [note SE pull out, to withdraw].

In phrases

pull out, the dogs are pissing on your swag (also ...on your bluey)

[1960s] (Aus.) a phr. used to advise someone who finds themselves in a no-win position that the only sensible course of action is retreat.