It's not just the outstretched limb. LGP is only required for a PC foul when the defender is performing movements not otherwise allowed.
If, for example, the defender is stationary but not facing the offensive player. 4-37-3 states that every player is entitled to his spot on the playing court, provided he got there without illegally contacting his opponent.
For the record, you agree with Lebron James on this play.
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