That's a new one to me. I don't where in the NEC that says that for a branch circuit. I think 100A would be okay on #2 Al if it's a service.
Here is a copy & paste from the 2008 NEC 310.15(B)(6)
(6) 120/240-Volt, 3-Wire, Single-Phase Dwelling Services
and Feeders. For individual dwelling units of onefamily,
two-family, and multifamily dwellings, conductors,
as listed in Table 310.15(B)(6), shall be permitted as
120/240-volt, 3-wire, single-phase service-entrance conductors,
service-lateral conductors, and feeder conductors
that serve as the main power feeder to each dwelling unit
and are installed in raceway or cable with or without an
equipment grounding conductor.
For application of this section,
the main power feeder shall be the feeder between the main disconnect and the panelboard that supplies, either by
branch circuits or by feeders, or both, all loads that are part
or associated with the dwelling unit. The feeder conductors
to a dwelling unit shall not be required to have an allowable
ampacity rating greater than their service-entrance conductors.
The grounded conductor shall be permitted to be
smaller than the ungrounded conductors, provided the requirements
of 215.2, 220.61, and 230.42 are met.
That 30 year "Master Electrician" must have picked up his Lic. in a Cracker Jack box as a prize. A subpanel or a outbuilding does not meet the criteria listed to allow undersizing the wire.
Bold by me.