Tesla probably looked too. How many companies have existing driver assist features that get updated in existing vehicles?
The adjacent requirement that you've highlighted of "(2) … Levels 3, 4, 5…" there's one before: "(1) …
does not include vehicles equipped with… driver assistance… not capable of, singularly or in combination… dynamic driving task"
And surprise surprise in Tesla's communication to CA DMV:
… City Streets will continue to be an SAE Level 2, advanced driver-assistance feature…
… City Streets (and all other existing FSD features), because the vehicle is not capable of performing the entire DDT…
… neither Autopilot nor FSD Capability is an autonomous system, and currently no comprising feature, whether singularly or collectively, is autonomous or makes our vehicles autonomous…
… the driver maintains responsibility for this part of the dynamic driving task…
Maybe the lawyer should have been more explicit and copy/pasted that part of the law?