What I believe they were talking about here is the club-developed rule. Which is different from the homegrown rule. You have to have at least one club developed player in the squad. That is a player who was at your club for at least 12 months by the end of his U19 season.
Yeah there's homegrown and then there's club developed, which I think is essentially homegrown but at your own club. Purely from playing FM, I think CL squads have to have 8 homegrown players and 4 club-developed players.
