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So if it's called liquid-tight ie. Carflex, how can they say the wire is not protected from liquid while inside of it heh.

While an unbroken piece of liquid-tight flex may prevent water from outside from getting in, as soon as you run ANY type of conduit outside, you can get condensation happening INSIDE the conduit, from the moisture in the air inside the conduit. Any outdoor conduit run is a wet location per the NEC, and needs properly rated conductors.

As previously suggested, simply replacing the NM with UF meets the NEC requirements and should be passed by the AHJ if properly installed.