Only for the case it is operating. For the case it is not operating, its presence obviously doesn't affect the loading.
It's not deleted altogether, it is just contributing to the possibility of being the largest motor and thereby getting an extra 25% only for the case when it is operating.
Here's another way to think about it: we have 3 houses in a row, all identical, except: house 1 has heating only; house 2 has a/c only; and house 3 has heating and a/c, but they are non-coincident.
Load calculations for house 1 and house 2 are straightforward and don't involve dealing with non-coincident loads. The load calc for house 3 should equal the larger of the load calcs for house 1 and house 2. Whenever house 3's heating is operating, its load will be identical to house 1. And whenever house 3's a/c is operating, its load will be identical to house 2.
Cheers, Wayne