Agreed and I don't want to turn this into an MLS rules forum. However, the section you quoted from is specific to a Special Discovery Player. Under Designated Player, it states "A player's Salary Budget Charge, and therefore Designated Player status, is generally determined by averaging all guaranteed amounts payable over the guaranteed term." I think that there is an article that addresses this point in the Athletic, but I do not have a subscription.
It is mesmerizing....