The thing you have remember is that even though there are only two instances of =91S=92 in the code of =91C=92, there are two instances of =91= C=92 (if set to reentrant) in the code for =91M=92. So each instance of =91C=92 will have its own data space within =91M=92, and as it loads its subVIs, it creates a new data space for anything it sees as reentrant.
Ed