Seems that it depends on that key word DAMP. Without a clear way to measure that just who gets to say if it is or is not damp. Only damage i see often is if the ends get water in them either from beinging installed before house is dried in or being in back of a pickup truck. Usually that damage is just the last foot and the paper gets wet. Wet paper i do believe will corode the bare ground to some degree. Also it takes forever to dry out.
If its ran behind the buildings finish i do not think it is damp any more so than what we have in bathrooms behind 1/2 inch drywall.
The building industry does.
"Both APA The Engineered Wood Association (APA) and the Vinyl Siding Institute (VSI) recommend weather resistant barriers."
So if the NM is installed on top of the wrap or building paper it is not protected from the weather.
I believe NM was meant for inside locations ony. That is my opinion and is not enforceable.
Can you give any fact that this 'area' is considered dry? It is not in the NEC so you would have to find something from ICC, APA, VSI or many of the other trade association websites to convince me that this area is considered dry.
Again I do not think that the NM will get 'wet' but it is not my call.