Irregularity type 4 in light framed shear wall structure

[smokiibear]

If i have a 4' shear wall on upper level of light-framed wood structure, and a 10' shear wall on lower level, with both walls starting from the same vertical post, would that be only a vertical Geometric irregularity, or would it be considered a In-Plan Discontinuity in Vertical lateral Force Resisting Element Irregularity per ASCE 07-16 Table 12.3-2?

When looking at the commentary C12.3.3.3, and related figures, I can't tell if the offset is intended to apply only if the walls only touch a single vertical post (i.e. C12.3-4) or if only the equation itself needs to be analyzed (offset > Lbelow or Labove, Fig C12.3-2)

Due to lack of clarity, I've always gone the conservative route.

Anyone have other information to enlighten this section of code?

 

[JoshPlumSE]

Personally I think it's both. But, why does it matter? Either way, you have to design the connection elements for the Omega level forces, right?