I found your diagram at....
Page 198, Did not try to find the text you show starting with (5.).
Document is dated March-2024.
I am stumped on why they are demanding this. Spoke with a few local EE's here to see if this has migrated outside your area and it has not...yet.
I did look at PSE&G Long Island handbook, and it does
not contain this requirement.
My guess is the metering department is behind this so they can work inside the cabinet without calling for the primary to be opened.
Is this your first time having to deal with this?
Have you spoke with other EC's to see how they have dealt with the issue?