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As I say this is just my understanding of it. A different page outlines the ‘Tier 4 Areas’ so I’ve interpreted the section you’ve quoted to mean you must stay within the area that you find yourself in as defined by that list. I can see why this could be argued against though as it could be assumed that someone doing a 100km ride across London and back is probably worse than someone riding 100km into the Tier 4 countryside and back in terms of coming into contact with people.
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I agree with you here that you are meant to stay in your tier 4 area.
However .gov says
Travelling out of a Tier 4 area
You must stay at home and not leave your Tier 4 area, other than for legally permitted reasons such as:
to provide emergency assistance, and to avoid injury or illness,Doing exercise is avoiding illness such as obesity so seems legit
I've not seen any guidance articulated in this manner. Gov website says " Travelling within a Tier 4 area - outdoor recreation or exercise. This should be done locally wherever possible, but you can travel a short distance within your Tier 4 area to do so if necessary (for example, to access an open space)".