That paragraph doesn't refer to the scenario we're talking about. Its talking about the 'concept' of when to leave the circling MDA from the circling area (not the protected area you're currently operating in on the S-1) to start your constant descent to the runway. This is why this clause exists, the 'concept' being that you're above the S-1 MDA, you can climb on track to the circling MDA, and then circle. This gives you protection throughout the entire maneuver.
As I said before, explain to me the reason for Para D's existence. Show me a single scenario where, if you were never allowed to climb up from < circling MDA to then circle, where para D would ever be applied to anything.