I feel the difference is the conductor sizing.
Key word for me is " equipment containing an over current device(s)" 2014 new language.
If under 1/3 for the tap conductor, 10' rule is default. Than the rating of equipment must meet the rating or the tap conductor and not exceed 10'.
Comment: In this case even if the tap conductor only needs 20 amp #12 THHN and you use a 30 fused switch. The conductors feeding this switch need to rated for 30 amp. Further more the the conductors rating would be at the terminals max temperature rating for conductor sizing.
60c,75c etc.
If 10' or under and meets 1/3 tap conductor it defaults into the 25' rule.
Than it's the over current device rating The equipment has to meet the over current device as a minimum.
To say you put in 65 amp fuses it has to be in a 100 switch or they don't fit. Or a 60 amp breaker in an 100 amp circuit breaker enclosure.
If was 100 amp OCPD.
Then the switch is 100 amp for the 100 amp fuses to fit.
If you put 100 breaker in an 60 amp circuit breaker enclosure you have a violation of the equipment based on it's rating.
Therefore I would say it based on the tap conductor size and then distance.
Smaller than 1/3 tap conductor ,10' rule is default.
Tap conductor 1/3 or greater. Default into the 25' rule even if 10' or under.
Now for 240.21 (B) (1) b, where it says "or".
I take this as circuit breaker in an enclosure. Here we two types one with a buss and one with out. The tap conductor terminates on the the terminals of the breaker with in the equipment. I see this as a back feed breaker on a panel board or a bolted in main breaker. Either way the current has to run thru the breaker first before the load.
If it was a circuit breaker enclosure with a buss you hit the Breaker not the lugs or the conductors have to meet the rating of the panels board with in the enclosure.
Then we have a circuit breaker enclosure with out a buss. Then the tap conductor (s) has to land on the breaker. You would just need to make sure it's not marked line or load. If so marked the tap conductor(s) has to land on the line marked terminals.
We must remember the tap conductors not only apply to ungrounded conductors. It also applies to grounded conductor (neutral). This conductor does not over current protection. It's responsible for carrying current in normal conditions and in fault conditions.
With that in mind it only makes since why the 10' rule is written the way it is. This also make since why the EGC never has to be larger than the tap conductor. With that in mind and the 1/10 rule you can see a correlation between the 1/10 rule and table 250.122.
Run some numbers based on CM.
Example: 200 amp feeder using 3/0 cu and applied the 10' tap rule.
CM for 3/0 = 167,800
10% of 167,800= 16,780
The tap would be #6 with a cm of 26,240.
Table 250.122 for 200 amp is a #6 cu and at 65 amps would require the minimum EGC to be a #8 cu. However the NEC says the EGC is sized off of the feeder OCPD. Which requires a #6. The EGC need not be larger than the tap conductor which is a #6.
Then the grounded tap conductor if one was used would also be a #6. You would not be able to down size it based on other NEC rules until after the OCPD protecting the tap conductor.
Based on that I can why it's written the way it is.
Using the same example using the 1/3 25' rule the minimums and using the OCPD and not equipment conductor sizing is all good.
3/0 at 1/3 the CM would be
167800/3= 55,943.33 or a #2
#2 THHN cu at 75c tap = 115 amps. That's 15 amps over 100. So if the 65 amp fuses were changed to 100 for a 100 amp fuses switch the tap would still be protected from over current. The load is a separate issue.
Just the way I see it and why.
It helps comply with the other rules in the NEC.
Edit, 60 fuses to 65 amp.