Vol 1?? That is just another example of Cathay muddying things up.
I like to use the windshield wiper analogy. The rules, as they are laid out, are like mud on a windscreen. It isn't easy to see through, but with some concentration you can peek through it. Cathay is like the windshield wiper; they come in and make a mess out of an already confusing situation.
It is very simple. You are not "in charge" when the captain is sleeping. You are simply watching things. Time that the captain is sleeping, well, try to think of that time as if they are taking a really big ****t.
You didn't log PIC when the captain went to take a ****t at your previous job, did you?
You are not the designated pilot in command, you are simply the next rung in the ladder, that is all.