I will explain the particular situation to clarify

I built a display panel for our company for a local home show, and the inside of the panel was open for display but I did not terminate the receptacles that were in 1110(handy) boxes because the panel was never to be energized and only for show. I ran a 2 wire to a standard receptacle that was fed from an AFCI breaker, and I ran a 3 wire to another handy box which was originally going to be a split receptacle and in my haste I mounted the GFCI receptacle to it(but not terminated). When the inspectors came around to inspect the booths they pointed out the 3 wire to a single 1110 box with a GFCI receptacle and we were told to change it even though it was a de-energized panel with no practical way to energize it easily. So me on the defensive asked why we cannot supply 2 GFCI devices from a 3-wire and the only answers I have gotten are 1 You are not supposed to, 2 Its against code. I have looked for a code but have come up with nothing saying one way or another, but I'm concerned that my understanding of GFCI's may be flawed when I fail to see the issue and the people I learn from and the authorities are telling me this is not an accepted trade practice

Oh and the issue of box fill in an Handy box was never brought up so its not a misunderstanding of the violation

Thank you for the replies