NUA question for retirement account

I’m getting a lot of conflicting answers regarding a Honeywell common stock fund held within a Honeywell 401(k).

My understanding is that NUA treatment generally applies when you hold actual employer stock shares, not necessarily a common stock fund within the plan.

Client is considering a direct rollover from the Honeywell 401(k) to an IRA at another institution. Fidelity is saying the rollover would cause them to lose potential NUA benefits, but I’m questioning whether NUA even applies in this case since the holding appears to be a common stock fund rather than direct Honeywell shares.

Has anyone dealt with this specifically in a Honeywell plan or similar employer stock fund structure? Trying to determine whether Fidelity is correct or if they’re overstating the NUA issue.