I think we're abusing the word 'exposed.'

I see 'exposed' as referring to live parts being exposed. A wire covered in insulation is NOT exposed. It's insulated.

Good heavens, would you require full PPE simply to step over an extension cord?

Likewise ... if everything 'live' is enclosed, insulated, shielded, etc .... how can there even be a "boundary" to cross into? That's like saying you'd need PPE to walk past a closed panel.