Actually, Rule #1 gives form control based on the tolerance of size for either callout (based on the generic tolerances in the title block). The position control doesn't control form.
As indicated above, for it to be a linear tolerance, the dimension arrow across the feature (i.e. not radially) needs to show the direction. There is no expectation of a square zone just because the diameter symbol is missing. The absence of the direction indicator makes callout (A)illegal.
Otherwise, the two callouts (A) and (B) are in conflict, as (A) is not a refinement of (B); they both have the same tolerance of 0.2 on position (ignoring the preceding point about absence of diameter symbol), and both refer to the same four features. Thus, they are in conflict.
Now, if this was a graphic generated just to ask what the difference is between the two callouts (assuming the cylindrical tolerance zone in (A)), then ...
Callout (B) establishes the location in space (as related to the datums) at which each feature should theoretically be; this includes orientation to each of the datums, including Datum A.
Callout (A) establishes only the perpendicularity requirements of the axis wrt Datum A. As a result, the pattern of 4 holes (as established by the 4X) is free to float around as a group, maintaining general orientation and location wrt each other, but not to datums B or C.
Jim Sykes, P.Eng, GDTP-S
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