According to HQ....
Todd,
What point 10 means is that you cannot specify Lab Caches in challenge criteria. For example, a challenge to find 100 Lab Caches would not be permitted. Similarly, a challenge to complete a 365 Grid with only Lab Caches would not be permitted.
However, a challenge to complete the 365 Grid where all cache types are accepted could include Lab Caches as qualifiers because they are not specified.
Best wishes,
Chris
Geocaching HQ