The correct answer to the L4 Prep Liberty to Pancake quiz is the skill is Illegal in Level 4 as performed. The skill is a downward inversion passing above prep level, which is not allowed per Stunts J2, Clarification 1. The exception
“Exception: Two leg “Pancake” stunts must start at shoulder level or below and are allowed to immediately pass through the extended position during the skill.”
does not apply because the skill is not a two leg stunt for the entire transition. Specifically the skill is not a two leg stunt at initiation, which is the bottom of the dip, instead it becomes a two leg stunt during the transition. The glossary definition of Pancake is
A downward inversion stunt in which both of the top person’s legs/feet remain in the grip of a base(s) while performing a fold over/pike forward rotation to be caught on the top person’s back.
This ruling and explanation are based on the 2016-17 version of the rules dated August 31, 2016.