Sanity check: 210.8(A)2 2017

Need someone to weigh in on this as I feel as the inspector and myself seem to have differing opinions.

I have built a storage/workshop shed that is 12x16'. It has a 30amp feed and a subpanel with a few circuits.

I failed my final inspection due to not having the outlets GFCI protected. My reading is this only applies to structures that are on grade or below grade.

This shed is on a wood foundation raised on blocks so it would be above grade to me therefore wouldn't require GFCI protection.

"(2) Garages, and also accessory buildings that have a floor located at or below grade level not intended as habitable rooms and limited to storage areas, work areas, and areas of similar use"