In California, it's called a JADU (Junior Accessory Dwelling Unit).
Yeah good point and a JADU = definition of 'guest suite' in the NEC
Nice thing about that is the 240.24(B)(1)(2)
Correct.
It sounds like it could potentially be used as either a dwelling or a guest room.
In the OP's case the bedroom can't be a dwelling unit unless it has a kitchen and a bathroom so its a guest room or guest suite as per NEC definitions.
Where the code messed up is when they say guest suites
'of hotels and motels', they should just nix that
'hotels and motels' and leave it as 'guest suites and guest rooms', the CMP would not have had to add all the other stuff about fire stations etc in the 2023.
So I'd say because of way the 2020 and 2023 are worded no AFCI required.