My rationale - if you like to over analyze such things.
NM is prohibited from use wet or damp locations 334.12(B)(4). All underground exterior raceways are considered to be a wet location therefore no NM is allowed underground, ever 300.5(B). This is not the same as a raceway on the side of a building.
However, a recessed box in a wall is never considered a wet location or a damp location. Whatever covers the box seals it from the elements when properly installed so as to make the interior of a recessed box a dry location. NM is code compliant inside such a box. 314.15
Once the box, cabinet, cutout box, meter enclosure, etc. is surface mounted outdoors, then it is either a damp or a wet location depending on the circumstance of location. However the interior of such a box is considered a dry location if properly installed and covered. NM is code compliant inside such a box. 314.15
All raceways on the surface of a building must be listed or approved for the installation. 225.22 There is no code that I can find that calls the interior of a raceway installed on the side of a building a wet location. If such a raceway is itself listed or approved for wet or damp locations, then the interior of such a raceway is considered a dry location. In such a scenario I suggest that NM is allowed.
Examples -
Raintite fittings installed with EMT from bell box to bell box on the outside wall of a house without an eave or porch. Wet location by definition, wet location rated raceway, inside the EMT is a dry location, NM is allowed (as would THHN).
Same as above except with compression fittings, listing of those fittings makes the interior of the EMT a damp location, NM is prohibited. A damp location wiring method inside the raceway such as NMC or THWN would be required.
The kicker, and what inspectors seem to have an interpretation position for, is the requirement for the raceway to be "arranged to drain" and "approved". In my first example, is the raceway if installed horizontally considered to be "arranged to drain"? If not, then all horizontal raceways fail to be code compliant in the first place. Can a person drill a 1/8" hole in the bottom of a horizontal run of 1/2" EMT and become compliant? Such an install concept is found in the fine prints notes under 225.22 but is not code enforceable.
For me - I don't want to have an install be open to interpretation by some young buck inspector who is full of beans and wants to flash his knowledge around. As such, I never install NM in a wet or damp location regardless of the raceway. I will install NM inside of any box in a wet or damp location that is itself properly installed. And I train my crews accordingly.
I have no problems to report with my methods.