George:
Ah, splitting hairs again?
IMHO, as the NM is 'terminated' in the box (jacket removed), and it's been an accepted practice, I have no issue with it.
There are many installations as you describe, that have been 'in service' for many, many yeras with no issues, so what is the justification for any 'change'.
Now, install a extension box on the recessed box, install a raceway from that box to another location (all surface mounted), and sleeve NM in the raceway, that I have an issue with.
