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Bill KratochvilBill Kratochvil 

Protecting Custom Metadata Types and Records - Subscribers can edit protected records?

After reading the content in the Trailhead unit noted in title I was surprised that my last choice (due to process of elimination) to question 2 was the correct choice - the answer was "B - Only the subscriber can edit the fields"???  Everything I was reading suggested (particularly the chart) indicates that only the package developer can edit the fields.

Is this an error or did I miss some important content?   Are subscribers allowed to edit fields for protected records if they are designated upgradeable?

2. Both fields on the VAT Data type are upgradable. If your records are protected, who can edit these fields after they’re uploaded and installed in an unmanaged package?
  A Only the package developer can edit the fields.
  B Only the subscriber can edit the fields.
  C Both the developer and the subscriber can edit the fields.
  D Nobody can edit the fields because–they’re locked after release.

Supporting excerpts follow...

Putting it all together
In a managed package, the package developer can always edit upgradeable fields. Subscribers can edit subscriber editable fields on public records but not on protected ones. In fact, subscriber editable fields on protected records are essentially locked after release.

Protecting Custom Metadata Records
Instead of protecting the entire metadata type, you can leave the type public and protect individual records. A protected record is only accessible to code in the same namespace as the record or its associated custom metadata type. But because the type is public, a subscriber org or extension package can add its own records to that type.

Field Manageability
Upgradeable—The package developer can edit the field after release via package upgrades. Subscriber orgs can’t change the field.
NagendraNagendra (Salesforce Developers) 
Hi Bill,

First and foremost sincerely regret the inconvenience for the delayed reply.

I hope you are absolutely right.I have also given a try in my developer org in validating the challenge the same happens for me.

Might be a bug in trailhead,kindly report the same to trail head support team with respective screenshots.

Here's where you may reach trailhead support team.

Kindly mark this post as solved so that it gets removed from the unanswered queue and becomes a proper solution which results in helping others who are really in need of it.

Best Regards,
Anay Bhande 2Anay Bhande 2
Hi Bill,

In the question, it is mentioned that the fields are uploaded to an unmanaged package.

If you look in the that unit, there is a line:
An unmanaged package gives the subscriber free rein over editing records and fields on custom metadata types.

So, the correct answer is B.

Anay Bhande