1. This does not directly reference whether or not the lights themselves are fire rated. (As has been mentioned by
@Pretty Mouth , some open back downlights are fire rated)
2. The bit about "the room above" only applies if the room above constitutes a separate fire compartment, which the book fails to point out.
The problem with the Codebreakers book is that it is only a compilation of opinions, with no real explanations given, and mostly vague references to regulations. It can be useful, but like any such opinions, needs to be taken as advice only, and not rigid rules.
(And yes, I do own a copy and have read it through from cover to cover, making notes of my disagreements and actual errors found)