So the vast majority of it is clear, but a couple things seem ambiguous? That's pretty successful for something this fuzzy.
So milk is group one regardless of the difference. Pasta is group one because the drying preparation is accomplished without adding to or changing its composition. But pasta wet in a can with added ingredients for stabilization - pasta "dishes" rather than just pasta - are group IV. That extra word does the heavy lifting. Dry spaghetti, group I. Spaghetti-o's, group IV.
Boiling alone doesn't land a canned vegetable in group III. In context, you see that it's the addition of more salt, sugar, or fat that is needed. Context is everything.
Sure, you can nitpick the grey areas, but you're getting away from the basic question. Is it a decent attempt to codify and lend basic guidance to the dizzying array of food preparations? Sure it is. If you were trying to argue specificity in a court trial, it wouldn't be enough. But that's not what it's for.