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(1)In wet locations unless the conductors are approved for the specific conditions and the installation is such that liquid is not likely to enter raceways or enclosures to which the conduit is connected

Once again, the code seems to condradict itself. Let's break this apart...

"In wet locations unless the conductors are approved for the specific conditions..."

OK, THWN is obviously the call here, but then:

"and the installation is such that liquid is not likely to enter raceways or enclosures to which the conduit is connected"

If liquid (water, in this case) is "not likely to enter the raceway or enclosure", doesn't that make it (by default) a not-wet (i.e. "dry", maybe "damp") environment, thus suitable for THHN?

Sheeesh... sometimes it makes more sense if the AHJ just gets "the face" and tells you "cuz I says so..."