Now shifting focus to 240.21(C), the question is will the set up described above allow for secondary conductor protection even if interruption is on the primary feeder?
I think this application is new enough to not be referenced yet. If 240.21(C)1 is allowed, where the primary device can provide overcurrent protection for the secondary conductors if it's a single-voltage change, then surely sensors at the point of connection that trip a primary device is legitimate.
So perhaps it's up to the AHJ since it's currently not written out as an exception.
If I reviewed it in a Power Study report I'd approve it.