The second illustration would not enlarge. The larger pix help see it better. Thank you

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From New Mexico's 2005 NMAC title 14.10.4 New Mexico Electrical code.

L. Article 334. Nonmetallic-Sheathed Cable. (1) 334.10 (3) Delete in its entirety. (2) 334.10(C)(3) Type NMS. Add: “For smoke detector circuits in dwellings.” (3) 334.12(A)(11) Uses not permitted. Add (11): “Type NM, NMC, or NMS shall not be installed in buildings, or structures such as stores, professional offices, motels, hotels, and similar occupancies classified as commercial or industrial.” (4) 334.12(A) (12) Uses not permitted. Add (12): “In any multifamily dwelling or other structure exceeding three (3) floors above grade. For the purpose of this article, the first floor of a building shall be that floor that has fifty (50) percent or more of the exterior wall surface area level with or above finished grade. One additional level that is the first level and not designed for human habitation and used only for vehicle parking, storage or similar use shall be permitted.”

So it is best to check local requirements where NM, NMC and NMS