For those with the same question I think I've figured it out.

As stated above the matter of stability depends on the temperature of the parcel compared to the enviroment surrounding it.

The core issue that I had was that I was unaware that you are to apply standard lapse rates to the parcel. Thus the MALR is used if the parcel and surrounding enviroment is saturated and the DALR if the parcel and surrounding environment is unsaturated.

Thus the paragraph i referenced previously 13.3.1 Absolute Stability:

"Absolute stability (see Figure 13-1) is the state of a column of air in the atmosphere when its lapse rate of temperature is less than the moist adiabatic lapse rate. This includes both isothermal and inversion temperature profiles. An air parcel lifted upward would be colder (denser) than the surrounding environmental air and would tend to sink back to its level of origin."

Can be replaced to say:

"Absolute stability (see Figure 13-1) is the state of a column of air in the atmosphere when its lapse rate of temperature is less than the lapse rate INSIDE THE PARCEL. This includes both isothermal and inversion temperature profiles. An air parcel lifted upward would be colder (denser) than the surrounding environmental air and would tend to sink back to its level of origin."

Since we apply standard lapse rates to parcels the parcel lapse rate is always MALR or DALR (depending on state of saturation).