Perhaps worth noting that earlier in the document we defined acts as functions from world states to outcomes so this seems to resolve the second concern somewhat.

What? That's what I thought "acts" meant the first time, before I read the document more thoroughly and decided that you must mean that acts are lotteries. If you are using "act" to refer to functions from world states to outcomes, then the statement that the VNM system only applies to acts is simply false, rather than misleading.