What you did in the past was perfectly correct but is has nothing to do with the question on the form.
Never try to figure what they mean just answer the question to the best of you ability.
Don’t ask why because it should not matter for the form.
If you want to ask to broaden your knowledge take one of the popular classes for the teachers “opinion” of why what is what.
The form speaks of two different minimums to be considered a wrap that will be eligible for a discount.
Minimum of 4 nails because of - 3 min on one side 1 min on the other side .
The way it used to be done is a wrap in my opinion as well but not a wrap as defined by the form. 1802 rev (2/10)
When I first started doing them I made the same decisions as you have about the wraps.