If you read the example, you must have noticed that there is no way to interpret it as describing a system of single-transferable-vote.
The example is very explicit that votes are cast for parties and all of the benefit of receiving a vote goes to the party for which it is cast. As such, the model is only coherent if there is no such thing as voting for a candidate.
The example given mentions voting for parties, but doesn't give explicit indication how this works. Are the votes directly for parties or for candidates from those parties? It doesn't say. I suspect that you see it as explicitly talking about votes directly for parties, but I see it leaving it undefined.
But really, what exactly the original example intended to convey is a pointless pedantic argument I'm not getting into.
The crucial point is that you absolutely can have multi-member proportional districts where you vote for specific candidates. So to someone who advocated for a such multi-member districts, the contention that you have to give up voting for individual candidates simply isn't true.
The example is very explicit that votes are cast for parties and all of the benefit of receiving a vote goes to the party for which it is cast. As such, the model is only coherent if there is no such thing as voting for a candidate.