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The author of the specification wants you to calculate the MAWP of the pressure vessel (see definition of MAWP in ASME VIII, Div 1, Appendix 3). He further requires that the MAWP of the vessel cannot be limited by a flange; this means that the vessel MAWP must be limited by some other condition, such as thickness of a shell or head, or by nozzle reinforcing area, or any of the other criteria that may possibly limit the MAWP. The MAWP of a flange on the vessel cannot be the smallest MAWP of the MAWPs calculated for each of the vessel components.
However, the requirement as written does not indicate if this applies only to "standard" ASME B16.5/B16.47 flanges or if it applies also to flanges designed to Appendix 2. It is common to require that the vessel MAWP should not be limited by the pressure-temperature rating of B16.5/B16.47 flanges. But not so common to require that an Appendix 2 flange should not limit.
Further, the requirement as written would apply to flanges on nozzles as well as to body flanges (body flanges may connect shell courses, etc). Again, it is not so common to require that body flanges may not limit the vessel MAWP.
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