If I am visualizing the geometry right - that is, 13 holes emanate radially from datum axis B and are located at certain distance from datum plane A (along datum axis B) - the callout in red is technically correct.
First of all, it is not composite FCF, but multiple single segment FCF (there are two Position symbols in each segment, not one for both). This is important, because in case of multiple single segment FCFs datum reference letters specified in second (lower) FCF do not have to be specified in the same order of precedence and with the same material condition modifiers as in upper FCF.
The upper dia. .010 FCF tells how 13 positional tolerance zones are located relative to datums A, B and C. They must be located at certain, most likely basic, distance from datum plane A (I do not see such dimension on this portion of drawing), must all cross datum axis B, and must be oriented to C through different basic angles. The lower FCF seems to say - tighten location of the pattern relative to A and its orientation to C within dia. .004, but keep location of the pattern relative to B at .010. Again, technically correct.
Unfortunately I do not really understand the picture shown on page 2. It shows dia. .010 tolerance zone (which looks OK), but I do not know why it shows .004 tolerance zone as distance between two parallel lines/planes. This is unclear to me, especially that the lower FCF also defines cylindrical tolerance zone (that should be seen as a circle on the picture). Am I missing something?