Hint" the words Permament Execemption is what is means...EXCEMPTION is not permitted to do something. i.e. Fitness Test/Fitness Assessment.
I completey understand what exemption means.
But you need to see it is the two words together that changes who the reg pertains to.
A permanent exemption is completely different than just a plain exemption, so this reg is only directed at a miniscule number of service members in the large pool that is exempt.
I've read and reread it numerous times and have needed guidance on interpreting different parts due to the nature of the wording.