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Love a good OH&S bash,
There is a clear demarcation point when large companies and OH&S managers start making shit, sorry 'policy' up for the sake of it.
At this junction the whole thing becomes a...

I don't see that it is considered transportation of dangerous goods, seeing as the LPG tank is a permanent part of the cars fuel system.
Failing that, the tank capacity needs to exceed 250 Lt before...

Fines for heavy trade and DGs are in the tens of thousands, aren't they?

Sounds like it was a commercial circumstance, so it doesn't fall within the rules of transporting DGs for domestic or recreational use.
They're probably talking about the actual label on the bottle...