As far as I'm able to read t's not meeting all 5 criteria - it's 5 separate criteria that each have their own subset of criteria. Players only need to meet one. This is pretty evident in the explainer:
https://digitalhub.fifa.com/m/ccab990abf45fcf6/original/ro8mje8vw98yp3rvfbmi-pdf.pdf
It would be all 5 criteria if there was an 'and' at the end of every one of the 5 criteria, like there is after each subset of criteria.
I'm probably explaining over semantics here to be honest and discussing something completely different than what you are without realising it - but you are right in that the 3 caps has to be from under the age of 21, and hasn't played for at least 3 years.
The graphic you've made only explains one of the 5 situations that FIFA will ratify a change of association for a player (Article 9 Paragraph 2 (c) as you've mentioned),