With or without the insulated neutral the frame of the dryer or range would be at a difference of potential in refrance to grounded objects due to voltage drop on the feeder(s) to sub panels.
By requiring the circuit to come directly from the service panel lessens this problem.
Let's try this again.
This how it is written with a comma separating the two parts of the sentence.
3) The grounded conductor is insulated, or the grounded
conductor is uninsulated and part of a Type SE service entrance
cable and the branch circuit originates at the
service equipment.
The first part being:
The grounded conductor is insulated,
The second part of the sentence which is everything after the comma.
Is:
or the grounded conductor is uninsulated and part of a Type SE service entrance cable and the branch circuit originates at the service equipment.
Now if it meant what you thought it meant it would be written this way with a comma added after "service entrance cable":
3) The grounded conductor is insulated, or the grounded
conductor is uninsulated and part of a Type SE service entrance
cable
, and the branch circuit originates at the
service equipment.
There would be three parts to the sentence.
1st:
The grounded conductor is insulated,
2nd:
or the grounded conductor is uninsulated and part of a Type SE service entrance cable,
3rd:
and the branch circuit originates at the service equipment.
But since there is only one comma there can only be two parts to the sentence. The second part goes all together, which means they are describing how the uninsulated grounded conductor can only be used if it originates from the service equipment.
If it but had that one little extra comma, I would have to agree with you, but it doesn't!
I have changed out a few panels with sub panels with only a 3-wire feed to a stove. These had to be inspected and the inspector agreed that only the SE cable with uninsulated ground had to originate at the main panel.