There is a statement from Baffert's attorney to be found in the Paulick Report:

https://paulickreport.com/news/the-biz/baffert-attorney-slams-egregious-medina-spirit-ruling-vows-appeal/

While I don't practice law, I generally find that the language of the law is not so obscure as to be inaccessible to laymen willing to struggle through it, so I decided to have a look:

The cited Rule 8:010, Section 4, looks to me like it is intended to distinguish substances like liniments that non-veterinarians may apply from those that require administration by a licensed veterinarian. The requirement that the treatment "does not include any drug, medication, or substance otherwise prohibited by this administrative regulation" indicates to me that the section is not intended to broaden the permitted medications.

The cited Rule 8:020-2 is not actually a list of prohibited medications. Rather, it is a set of withdrawal guidelines that describes itself as purely voluntary and advisory. Their purpose is described as follows: "A licensee may present evidence of full compliance with these guidelines to the Kentucky Horse Racing Commission (the “Commission” or “KHRC”) and the stewards as a mitigating factor to be used in determining violations and penalties." The following caveat is also included: "Medications administered at dosages above manufacturer’s recommendations, in compounded formulations and/or in combination with other medications and/or administration inside the withdrawal interval may result in test sample concentrations above threshold concentrations that could lead to positive test results and the imposition of penalties."

In that context the argument that the regulations only prohibit injection of betamethasone acetate sems to fall flat. Rather, the KHRC has only provided withdrawal guidelines for administration in that form.

There is a separate section of those guidelines that applies to ointments: It reads: "The following substances may be administered or applied up to the scheduled paddock time of the race in which the horse is to compete: Topical applications such as liniments, leg paints, salves, and ointments which may contain antibiotics or DMSO, but do not contain steroids, anesthetics, or any other prohibited substances."

Betamethasone (without reference to any particular salt) is listed a a Class C medication in Rule 8:020.

I know there are good legal minds who read this board and would be interested if anyone thinks I am way off track.