The business was stating that since the OAL was over 26" with the brace, these were considered firearms and therefore not pistols at all. They were wrong.
The ATF is clarifying that the braces are not counted by them when considering OAL, which I always thought was the case to begin with.
To be fair, Franklin Armory didn't just make it up, they had a letter from the ATF. The ATF decided to change their mind again.