I believe some of the wording is if extending more than 6' or modifying the circuit arc fault required. Isn't extending the circuit 5' modifying the circuit???
Does the 2020 NEC give a definition of modify? My NEC doesn't but, I don't have access to a 2020 codebook. I can see the wording being interpreted in multiple ways as well. They need to define "modify" in the NEC I think, for clarity.
If I were reading this, I would assume that as long as I didn't add or remove anything from the original circuits design and didn't extend its point of utilization by 6' or more, then I wouldn't need to bring an existing circuit up to current code.
Example: Existing circuit = 6 receps, 20 amp, #12 AWG and no EGC.
As long as all I did was change out the receptacle's or replaced wiring with newer wiring (12-2) and the replacement components had the same attributes as the original then, I wouldn't have extended or modified the circuit in anyway other than, added an equipment ground.
The circuit would still have all of the receps located in the same spots with, the same amount of receps, fused at the same current rating being conducted by a wire with the same ampere rating as before. All I would have done was change out old components with, new components and stuck with the original circuit by design.
The addition of the EGC would be the catch. As long as the NEC clearly defines "Modify" then it makes it pretty simple to me.