I understand exactly what y'all are saying, but have a different take on it.
Part I of Article 240 is GENERAL
Part II of Article 240 is LOCATION
240.4 says conductors shall be protected against overcurrent in accordance with their ampacities.
To me, this does indeed mean all conductors, ungrounded, grounded, and grounding. Now, notice that 240.4 does not say WHERE the overcurrent devices have to be LOCATED.
As an example, say we have a 120 volt circuit: Circuit breaker to ungrounded conductor to load to grounded conductor to neutral bar.
The grounded conductor is protected by the circuit breaker by virtue of the protection of the ungrounded conductor having an OCP device. I am also suggesting that any eguipment grounding conductors of the circuit are also protected by the circuit breaker.
Now, Part II of Article 240 talks about LOCATION of OCP.
240.21: This is where it says that fuses/breakers shall be installed in series with ungrounded conductors at their point of supply.
240.22: This says not to put OCP directly in series with the ungrounded conductor.
I don't really see an issue with this. Except, perhaps, there should be a section equivalent to 240.22 except applying to grounding conductors.