A corollary to the interpretation in the preceding post is that the 25' tap rule, 240.21(B)(2), may never be used with a fused disconnect. 240.21(B)(2)(2) requires that "The tap conductors terminate in a single circuit breaker or a single set of fuses that limit the load to the ampacity of the tap conductors." But the preceding interpretation is that with a fused disconnect, tap conductors never terminate in a single set of fuses.
Pointing out this nonsensical implication may help the AHJ in question understand that they have reached the wrong conclusion. I.e. it is logically inconsistent to allow 240.21(B)(2) taps to terminate in a fused disconnect, but to require a 240.21(B)(1) tap terminating in a fused disconnect to be calculated based on the disconnect rating rather than the fuse size.
This still raises the question of why 240.21(B)(1) uses different wording than 240.21(B)(2). I'm not sure, but my understanding is that it is meant to be a broader allowance than the 240.21(B)(2) wording, not a more restrictive requirement. For example, I believe you could terminate a 240.21(B)(1) tap onto an MLO panelboard with only two circuit breakers in it, as long as the tap conductors are at least the ampacity of the panelboard rating. [The panelboard would comply with 408.36 Exception 1 if the sum of the circuit breaker ratings does not exceed the panelboard rating.] That is not something allowed under 240.21(B)(2).
Cheers, Wayne