Just to clarify, I originally said: "would prefer VFR only pilots not fly VFR OTT" We know it shouldn't substantially increase risk for an IR pilot.

The FAA has restricted student pilots, recreational pilots and sport pilots from flying VFR OTT. That wasn't always the case for student pilots. The FAA slipped in a change when nobody was looking. Looks like they prefer student pilots not do that.

The preference became known to me at a safety meeting several yrs ago when it was indicted by an FAA rep. while giving a presentation.