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Poppit You get one exemption for free, no questions asked. How this works out practically is either your saddle is at 0cm behind the BB and you get 75cm reach, or your saddle is -5cm behind the bottom bracket and you get 80cm reach. (IF you are very tall you can get an extra reach exemption that is separate from those) If you are at -3cm setback, they consider that taking the 0cm exemption, so bars must be a 75cm. If you're at -8cm setback, you get the 80cm reach, but not 83cm.
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Baby Puke the rider is never measured with the bike (besides the height if you ask for that exemption) so arm angle is no longer a measurement taken.