I'd assume gravity loads only, though considering tension/ compression chords for shear walls with that reduction may be necessary. I'd pull the actual assembly description. I believe it references another document that goes into more detail on how to apply capacity reductions.
Welcome to the world of fire design controlling stud design, we run into this quite a bit with apartment designs. I recommend pulling their ICC report, normally I see that it says Fc' is limited to the lower axial capacity and they provide a max vertical loading in said reports. This may be their ICC, couldn't find much on their site: Link.
