No, I don't think that's the reason. This is a technical definition problem, at least in the jurdisdictions where I've worked.
Condensate from any source is "non contact process water" and process water is not allowed into a sanitary sewer (or storm sewer, for that matter) without going through an industrial pretreatment first.
I don't think you're going to get around that with the building inspector, though you and he both know it's kind of silly in this case.