Thanks for pointing that out. For my own sanity, I'm going to think this out and pull an Ernie.

The wire in question is actually CL2 (not CM), which does not have the same exclusion. However, anybody versed in the code knows that CL2 and CL3 wiring can easily be substituted with CM wire of the same type, or can also take the role of CM wire when installed with CM wire. But CM wire cannot be substituted with CL2/3. And the code applies to CM. But the wire is CL2. So my literal interpretation is that CL2 wiring has not been excluded from the "wet location" requirements of 310.10 and the code I originally mentioned.

But the practical side of me knows that the AHJ will not care or look. That being said, if the conduit is outside in any way, shape, or form, it will have water in it, and I have seen your everyday general purpose wire deteriorate in these conditions, particularly CAT5E.