Beat me to it.
The Inspectorate appears to be one of those modern bodies that does not believe in section numbering (*), the parts most relevant to the distinction between law and advice are on page 35, the most relevant quotes being:
"It is a fundamental principle of interpretation of legislation (primary and secondary) that it should be construed in the light of and to give effect to its statutory purpose. "
"The request to ‘stay local’ has never been a legal requirement. The suggested limits on the number of times a person could go out to exercise in a day and for how long were only ever in guidance, not regulations"
(My italics.)
The Guardian gives a longer quote from this section. Given the acres of newsprint that they devoted to muddling law and guidance, I hope they read it carefully themselves.
I do not suppose that this will put an end to the debate. Anyone convinced that looking out through your letterbox will infect the entire street will naturally assume that exercise as a reasonable excuse is limited to the most restrictive versions of stay local: in the same part of town, meaning not beyond the end of the street, perhaps not so far.
It has to be said, I am not clear whether the Inspectorate's comments relate to England only, I suspect they may be wrong for the Celtic banana republics. The police appear to have been confused on this point. On page 36 the Inspectorate report says that the most numerous issue of issuing incorrect penalites was trying to apply Welsh law in England and vice versa.
(*) Or document configuration control in any form: no issue number, date, or page history page.