Close, but in this case the inspector appears to be saying that openings (i.e. conduit) through which conductors enter do NOT need to be sealed while openings through which no conductors enter must be.
I read that section as requiring that there should not be big holes around the fittings or raceways or NM, such as when putting a round fitting into a square punched hole or feeding NM in without a clamp that substantially blocks the opening. (As an example of what would not be allowed, think of a fitting that clamps NM by bringing together two flat bars on either side of the NM but without any projections to cover the hole opening on the far side of the clamp from the NM.)
