That's enough if you read it carefully. The phrase from the FAQ I quoted above belongs to the DM personally, there's not a single word made up by me here.
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The problem, it seems to me, is that the DM is first and foremost a programmer, while players for the most part are not. And here we have the case where what makes sense to some people requires additional explanation for others.
OK, let's sort it out and apply logic. If in the previous sentence DM says that
Episode 2: New Life. It contains versions v1 - v16. and then specifies that the
numbering in Episode 3 has changed and it starts not from v17 but from v1, what does that say? Correct, that Episode 3 contains all the content
from v17 from version 1 all the way up to the current version. The phrase about numbering means exactly that.)
If you know you've played Ep2.2. V3, do you need any further clarification to know that Ep
2.2 v3 is included by default in
Episode 3 v7? I think not.