Haze,
You have to quit reading 70E so closely, your finding all the hidden problems!
Actually what you pointed out does appear to be more inconsistencies. Category -1 was suppose to have been eliminated but this footnote does seem to lead you back into it.
I think the 18 inch and 36 inch distances are from IEEE except they did not get it completely correct. IEEE uses a different working distance for LV switchgear than panels and MCC's, and NFPA seem to have lumped it all as the 18 inch panel working distance.
More Revisions!