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In section 3.5.3 the description of FTDistance (and as well in 3.5.2 FTWindow) should be augmented to explain what it means if such operators are nested.
The TF agreed with your comment and has adopted changes to both the Distance Selection and Window Selection parts of the Full-Text spec to address the comment. The bug is therefore being marked FIXED. Since you participated in creation of the solution, we assume that your concern is satisfied and we are also marking the bug CLOSED.