You've hit on a very common point of confusion when interpreting the NEC regarding load calculations, especially concerning continuous loads. Here's a breakdown of what the note is trying to convey and why it can be misleading

Understanding the Core Issue

The note's goal is to prevent double-counting the 125% multiplier for continuous loads when calculating the total load for an occupancy. It's specifically related to the unit loads (volt-amperes per square foot or VA/sq ft) for lighting provided in the table in Part 3 (like Table 220.12).

What the Note Intends to Say Don't apply the 125% multiplier again to the general lighting load calculated using the unit loads. The unit loads in the table already account for a typical level of continuous usage in that type of occupancy. The NEC committee has estimated that the values in the table are already representative of lighting being on for 3 hours or more.

Why the Note Can Be Misleading It conflates occupancy load calculations with branch-circuit sizing. You are right; 210.20(A) applies to branch circuit conductors and overcurrent protection. The note attempts to bridge the gap between the initial load calculation for an entire occupancy (using Part III of 220) and the subsequent decisions about branch circuits.

Here's a Practical Explanation

Let's say you are calculating the service load for an office building. You use Table 220.12 and find a unit load of 3.5 VA/sq ft for general lighting. The correct procedure is:1. Calculate the total general lighting load

Multiply the building's square footage by 3.5 VA/sq ft.
2.

Do NOT apply a further 125% multiplier to that total.Why No Extra Multiplier is Required for Lighting Loads (Usually)

The reasoning is based on assumptions about typical lighting use: The unit loads in Table 220.12 are already considered to include a "built-in" allowance for continuous use. This is based on the NEC committee's judgment of common usage patterns for different occupancies.

Important Caveats1. Specific Dedicated Lighting Loads

If you have specific lighting loads within the occupancy that are known to be continuous (e.g., emergency lighting that runs 24/7, display lighting in a store that's always on during operating hours), you would still apply the 125% multiplier to those specific loads separately, as required by 220.18.
2.

Non-Lighting Loads

This note only applies to the general lighting load calculated from the unit loads in the table. All other continuous loads (e.g., motors, HVAC equipment, electric vehicle chargers) still require the 125% multiplier (or the allowance for demand factors, where permitted by the NEC).

In summary, the note is there to prevent you from applying the 125% continuous load multiplier twice to the general lighting load. Use the unit loads to calculate the lighting load for the occupancy, and do not multiply that number by 125%. However, if there are known continuous lighting loads, multiply them by 125%. And always apply the 125% factor to other types of continuous loads.Think of it this way: The occupancy tables pre-calculate for continuous lighting.* 210.20(A) is for specific and known continuous loads.You were right to question the connection to 210.20(A), as it does bring the branch circuit sizing issue into play unnecessarily. Flag for review