Hey Tex Doc,
You’re right to be confused about how the AMC hut system works. The official policies sound draconian to the point of unworkable.
However, when night descends on the mountains, the hut crews are pretty autonomous. If you’re on good behavior, then they’ll accomodate you.
Here’s an example. I did a long day up into the Presidentials. There was drizzle and a thick mist. It was a bit cold. There were no camping options; the area was pretty much a boulderfield.
I arrived at Lake of the Clouds hut cold and wet. They already had a full load of work-for-stays, so a few of us were just trying to huddle out of the way. But the hut crew was working hard to serve 40 or 50 people, so I just pitched in-- collecting dishes, wiping down tables, sweeping, etc.
For a small fee, they let us sleep on the dining room tables that night in a big room surrounded by windows on three sides. I woke up well before dawn to an amazing sight: there was a complete blanket of clouds BELOW the hut and a full moon ABOVE, so we had this panoramic, moonlit view with a cloud layer as a “ground” and only the highest mountaintops bursting up through. Pretty amazing.
I helped with breakfast and the crew refunded my fee. So in principle, I should have been screwed-- I arrived too late to get a work-for-stay-- but in practice, I had one of the coolest nights on the whole trail.
Eric