I really do think the intent is to have a conductor sized to 430.24 and if the device is doing both SC/GF and overload then have the conductor size increased to the overload for feeders.
To clarify, are you saying that you think the intent for feeders (430 Part V) is:
40A FLC motor only: OCPD at least 50A. For 50A - 100A OCPD, 50A ampacity suffices. For larger OCPD, 240.4 applies.
40A FLC motor plus 50A non-continuous non-motor: OCPD at least 100A. Ampacity at least 100A. Must comply with 240.4.
I don't, I think for the last one it should be:
OCPD at least 100A. For 100A - 150A OCPD, 100A ampacity suffices. For larger OCPD, 240.4 applies.
Here's why that's OK and in accordance with the other motor allowances in the NEC. Simplest model is a feeder to a panel with a breaker for the motor and typically a 50A breaker for the non-motor load. The motor breaker can be 50A to 100A, and the motor branch circuit is only required to have an ampacity of 50A. The motor overloads protect the motor branch circuit from overload. So the branch circuit conductors have proper overload protection at 50A, and proper SC/GF protection at 50A-100A.
That means for the feeder, overload protection is provided at 100A, in the form of 50A from the motor overloads and 50A from the non-motor load breaker. In which case the breaker at the source of the feeder just needs to provide SC/GF protection, and 100A-150A is sufficient for that.
Now admittedly the non-motor load could be on, say (4) 20A branch circuits. So the overload protection is at 130A which seems too high. But there are other places in the NEC where overload protection is dependent on load calculation, such as 230.90(A) Exception (3). So it's a judgement call as to whether this phenomenon of insufficient overload protection like this is common enough and problematic enough to not rely on overload protection via load calculation.
Cheers, Wayne
P.S. The cleanest way to handle all this, and maybe feeder taps too, would be to have separate rules for each point of the wiring system on the required SC/GF protection (which must be provided upstream) and overload protection (which may be provided downstream). Then you'd comply with both.
Or an even simpler way would be if we had OCPD whose behavior over all time periods better matched the conductor damage curve shape, so that a 40A FLC motor wouldn't trip a 50A OCPD at startup. Then there would no need to consider overload protection and SC/GF protection separately.