I had considered adding the following to my first Post (#2) in anticipation of petersonra's (or someone else's) response in Post #4. I thought better of it at the time since the OP is an apprentice and I didn't want to confuse the issue.
In light of all the further discussion that has arisen, maybe what I should have added:
"And the convoluted answer for question #1 is there are protection techniques that alter the area classification such as proper ventilation or purged/pressurized systems. In those cases, the area classification would become Class I, Division 2 instead and LFMC is permitted. [Section 501.10(B)(2)(4)] Other protection techniques that permit LFMC in Class I, Division 1 without altering the area classification are Intrinsically Safe Systems [Article 504] and some Combustible Gas Detection Systems [Section 500.7(K)(1) and (3)]. Each of the cases mentioned above require considerable additional maintenance, and alarms. Wiring methods acceptable under Section 501.10(A) are basically passive without the additional bells, whistles and hoops to jump through. NONE of the methods are inexpensive, but the Section 501.10(A) wiring methods are usually the most cost effective - not always, but usually.
The answer to question #2, assuming no 'convoluted' protection technique, is it is useless to seal an nonexplosionproof enclosure in Division 1 since an interal arc could still occur. However, it wouldn't be necessary to seal an explosionproof conduit body as described in the OP at all. [Section 501.15(A)(1)(2)]"