Thanks Dorothy. Your reply, as always, was complete. And I remembered everything correctly from years ago. However, I do feel that section 33a is poorly written and should be clarified. New examples should also be written. As it is at present it reads "When the ink-print text ... show(s) labeled statements ... in NON-REGULAR type form, the body ... etc. etc ... but the labels themselves must be transcribed as though they were entirely capitalized"
This seems to limit the double cap situation to those situations where the text is in non-regular type, and in fact there are no examples showing a labeled statement in regular type. Of course the "Intro to Braille Mathematics" doesn't add any clarification, as it doesn't go beyond what is in the code.
I remembered what my teacher taught me back in the 60s, and it agrees with everything you answered, but I think someone should revisit the code.