I need clarification with the TOS, Community Guidelines, and VRC's stance

According to VRC’s TOS, NSFW of any kind is banned.
Yet, their conduct and what they have said in their Community Guidelines state that if it is in Public instances like Friends, Friends+, and Public it is not allowed but if it is kept to private instances like Invite and Invite+ it’s tolerable?

What is their official stance on this?

From the Guidelines

No matter what, our Terms of Service are the “final word” for the VRChat rules. However, these Community Guidelines are meant to help you understand how we expect you to behave in VRChat.

Interpret that as you will, if the TOS says it’s isn’t allowed then thats the official/legal stance.

My very own interpretation is that it is tolerable in that context, but because of the TOS, if they want to take action, they will. Results, don’t be stupid and obviously break their guidelines and you should be fine.