I actually had the power of the pencil of AHJ in my state job and It was something I didn't take lightly but if those cans were installed as far away from the "storage space" as they would be if they were "outside" a closet in a normal house I might give him a huss.
If they want open cans within arms length of storage space it is "in" the closet.
BTW 410.8 does not say "dwelling". How do you deal with this in a motel where the "closet" is an open clothes rod in the hall, just inside the door. Is that a hall or a closet?
Saying you are looking at what is written on the plan is a cop out. Fire can't read plans.
