Well, one can neer predict the rulings of adjudicators, but these lines are in a completely laughable state, sufficiently worn out such that any normal person would there is no restriction there any more. It is an insult, frankly, for them to claim they are sufficiently clear.
Of course, as always, to get an unbiased decision, you have to stand your ground and take them to the adjudicators. You're only at the informal reps stage at the moment, and councils ruthlessly game the system by refusing 99% of them, knowing most people then cough-up, not wanting to risk the extra dosh. If you want to fight them, you now have to wait for the Notice to Owner and submit reps again, this time formal. At his stage they may fold because at NtO stage the discount has gone, so they know you are serious about the matter.
It's really all about your attitude to risking money. If you've got investments you're already risking money !