The nub of all this is the rule (2.57.2 in NFHS) that is a rule for the special case of the FLEX and its counterpart for the DP. Those positions are special cases, governed by a special rule even though other players are not. That means that any offense by the player who is FLEX, other than replacing the DP, is illegal substitution.
Even if it does not seem consistent to say FLEX for B1 is illegal substitution and B5 batting for B3 is not, it is correct because the rule is written that way for the special cases of FLEX and DP.
NFHS and ASA have different penalties for illegal subs, but the key is identifying whether it is, then worrying about DQ vs. RTB and out or not, etc.
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Officiating takes more than OJT.
It's not our jobs to invent rulings to fit our personal idea of what should and should not be.
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