That is not what I read. I read that you will be DQ if your FTP during the ride is more than 4 watt/k (in cat B). So, e.g. if you averaged 4.2 watt/kg and the race is less than an hour, it's ok since 4.2 * 0.95 <= 4 (the 20 min FTP calc).
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Sorry, two different things. Going from cat A to B, or get DQ.
Not quite - there's a difference between your "average watts" and the 95% of 20 minute power FTP figure. It's a bit confusing but essentially you can ignore the "average power" figure on ZP for this purpose.
As long as you then enter the correct Category you have leeway to exceed the max w/kg FTP for your category in a race by 0.2 w/kg without being DQ'd or moved categories (exactly what happens I think may differ depending on the race organiser).
As the limit is 3.9w/kg in Cat B, this means you can do 4.1w/kg for 95% of your best 20 minute power in the race and not be DQ'd. (i.e not quite the same as 95% of your "average power")
It doesn't show by default but you can see the 95% figure by clicking on "view 95%" button at the top of the race results. Having done this for last night's race, no one in the Cat B results exceeded 4.1w/kg for their 95% of 20 minute power figure (even if the "average watts" figure was higher).
But Tommy is also right that your category that ZP automatically assigns you is calculated from the average of your 3 best FTP's from races in the last 90 days - FTP in this case again meaning 95% of your best 20 minute power