I don’t know why it says that because that is not the rule. I believe it’s awkwardly referring to the final course.
See page 17.
http://admission.universityofcalifornia.edu/counselors/files/quick-reference-2017.pdf
ALSO THIS:
If a student earns a D in the first semester of Spanish 1, would a grade of C or better in the second semester validate the first semester grade?
Yes. A grade of C in the second semester of Spanish 1 validates the first semester. Both grades are used in calculating the GPA for the Scholarship Requirement. This same principle applies to any language/any level course.
^^^ From this link:
http://admission.universityofcalifornia.edu/counselors/q-and-a/validation/index.html
Validation is the same for both freshmen and transfers. Ask your CCC advisor to verify, but you are fine.