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No, that's not entirely so. Service cable with bare ground was allowed for the run from service equipment to the receptacle allowing the uninsulated ground to serve as the neutral providing it (the ground) was also #10 or larger for ranges and dryers.
But from a branch circuit the insulated ground/shared neutral was required to be insulated, yes. But normally 10/3 w/oG was run, not 4-wire.
The height of absurdity in Code (or misinterpretation, I'm not sure, I've not researched to see for certain) was illustrated last summer here when the well pump dropped owing to a failure in a plastic joint (discovered it had been cross-threaded on installation as root cause) and fishing it out ended up ruining existing down-hole wire. They ran
4-wire cable claiming it was required by Code down the hole to a 240V pump with no connection or use whatever for the neutral. Stupid is as stupid does... :(