Looks like it was published before ALRs were band.
No, they were banned last April and the cache was published in November. But Groundspeak distinguishes between caches with ALRs and "challenge caches", and the latter are still allowed.
To qualify as a challenge cache, the logging requirement must be cache related. So "find 25 caches whose names include the word 'apple'" is probably OK, but "post a picture of yourself hanging upside-down from an apple tree" is not. I'm sure there are borderline cases, and it's probably left up to the cache reviewer to decide what qualifies.