The correct answer to the Cradle from Inversion quiz is it’s first legal in Level 4. In Levels 1-2 both the inverted stunt and dismount would be illegal. In Level 3 the stunt would be legal, but the dismount rules state “Dismounts from an inverted position are not allowed” (Dismounts O). In Level 4 the dismount rule changes to “Dismounts from an inverted position may not twist” (Dismounts N), allowing non-twisting cradles from inverted position.
This ruling and explanation are based on the 2016-17 version of the rules dated August 31, 2016.