This could get confusing quick, but I think I understand how it all works. The reentrant property does not affect any callers or callees'. It strictly on a VI by VI basis.
In your last example, there would be 4 values of 'V', since both C and S are reentrant, 'M' would call two instances of 'C', and each of those would call two instances of 'S' If only S were reentrant, you would have 2 values of 'V' since 'M' would be calling the same instance of 'C' which is calling 2 instances of 'S'. If 'C' were renetrant and not 'S', you would have one value of 'V' even though you'd have two instances of 'C', they both would be calling the single instance of 'S' four times. I hope that came out correctly and didn't confuse matters more. It can be a bit tricky sometimes to get my thoughts from my head to my fingers. Ed