It is indirect. You have to look at the scope of each subsection of 501.4(D)
Section 501.4 (D)(1) states all cables are to be sealed at their terminations.
Sections 501.4 (D)(2) and (3) are for cables “in conduits.”
Type MC-HL and MI are the only “open” cable wiring methods permitted in Division 1. Both are required to be sealed at their terminations. generally, neither of them are in conduits at the boundary so neither of them are required to be sealed there.