Okay, I reread the source articles, and the confusion between tiny homes and mother-in-law apartments is not yours but the news sources. The regulation being discussed covers both mother-in-law units and tiny homes built on the same property as an existing home. It does not cover tiny home neighborhoods or new developments.
News sources are pulling in the tiny home arguments and highlighting those because they make a more interesting story than mother-in-law apartments.
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mother in law ADU can be attached or detached so that is why they might also be referred to as a tiny home which they technically are 👍😂
A detached ADU would be a tiny home, an attached would not. Unless your definition of tiny home is based on square footage only, in the which case any studio apartment below a certain size would also be a 'tiny home'.