What RULE NO 38 says is that neither the State nor Congressional district can force either the entire State or Congressional district as a whole to vote for one person. Meaning that, Winner-Take-All at either the State level or the Congressional district level is invalid.
Ex.(1) Florida is Winner-Take-All statewide: this is invalid per RULE NO. 38
Ex.(2) Now lets say that -for arguments sake- PA had a WTA for Congressional districts, meaning that the winner of the popular vote in the CD won all of the delegates in that CD -this would also be invalid as per RULE NO. 38; because neither the State nor the CD can force everybody in either the State or the CD to vote as a Unit.
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