This is true. The wording on Form 3520 c) is "Check if any excepted specified foreign financial assets are reported on this form." with meaning that you haven't reported them on 8938. If you don't check c) but report them on both 3520 and 8938 too then I wonder if this is good enough? The duplicative reporting change was brought in to make life easier, but because TT can't get its act together is actually makes it harder!
