Please note that the latest code edition goes so far as to ban the use of ordinary NM in even damp locations. On another forum, home inspectors are even being urged to call out crawl space NM runs as being contrary to the NEC.

I don't say I agree with this - but that's the way the code reads. First they tell you that NM allowed in damp locations ... then a few paragraphs later tell you that NM-B, the stuff we actually use, can't go into even damp areas.

The law has a principle of not entertaining petty claims. It frowns upon $1 lawsuits and 1mph speeding tickets, for example. There's even a fancy latin name for this principle.
What I'm getting at is that I would not fault an installation that had a transition to a 'proper' wiring method as soon as possible, after entering a different environment.

NM ("Romex") is an amazing material. First they expand its' use, pointing to 70+ years of use as proof that it is safe. Then they tell us we can't put it in the one place where most of it goes (crawl spaces) and require us to use AFCI's to protect it. They tell manufacturers they have to use 'wet location' conductors (Thhn/Thwn) then tell us it can't even be in damp locations.

I can't speak for anyone else, but I'm confused!