Only because in order to "operate" a rifle it needs to be fired from the shoulder - ATF measures the rifle with the folding stock extended because that is the form in which it is considered a rifle by the GCA definition. Whereas a pistol only needs to be able to be operated by one hand, per the definition in the GCA, so the brace is an unnecessary addition and therefore doesn't impede the user's ability to operate the firearm technically/legally speaking if it is folded. It may conflict with prior opinion letters stating otherwise, but I can absolutely see the logic behind this determination.