In my non-expert opinion and based on limited personal experience, the key phrase is:
electrical service is modified or upgraded
TL;DR You are not modifying or upgrading your service so the new rules don't apply
A very common situation is that an older 100A (or similar, anything less than 200A) service is upgraded to 200A. That is a heavy up. It is commonly done when the original panel is replaced, whether the reason for the replacement is:
- Increased electric power demand (i.e., actually need a heavy up)
- Replace a dangerous panel (Zinsco, etc. or damaged due to corrosion, etc.)
- Add more circuits (this can be done to a limited extent by adding a subpanel, but there are often practical limits to what you can do without replacing the main panel)
- Replace Rule of 6 panel with a main breaker panel
- Add GFCI and/or AFCI breakers if no GFCI or AFCI breakers are available for the old panel
- Add a generator interlock
- Add solar power
- Add whole house generator or battery backup
Only the first of these requires an increase in service. But many utilities and/or jurisdictions will use the excuse of a full panel change with existing service below 200A to be treated as a heavy up. Once you are in a heavy up situation, in certain respects it is very much like new service. In particular, everything from the utility pole to the main panel is likely to be replaced.
In reality, not everything needs to be replaced. For example, if the meter was already replaced with a 200A-capable smart meter then it is very likely that the utility will reinstall the exact same meter when done. Or the feed wires (service drop) from the pole to the weatherhead may have been replaced a few years earlier when the utility upgraded wiring in the entire neighborhood and so those wires are already 200A capable (but then again, they may do it anyway...). Or the utility may choose to not replace the service drop until they determine (based on the smart meter) that you regularly exceed a particular demand level.
But once they are, at least nominally, requiring replacement of everything from the pole to the main panel, they can require upgrade of any of those components to current (per local rules/NEC) standards. That can include requiring an outside disconnect at the meter.
It should not include surge protection as that is normally inside your main panel and straight functional replacement does not normally trigger upgrade requirements. Move the main panel to a different place in the house or make the old main panel a subpanel with a new main panel on the other side of the house feeding it and you likely will need to add surge protection.
Similarly, main panel replacement (heavy up or not) does not normally trigger requirements for GFCI and AFCI on any existing circuits. Add new circuits and the requirements apply.
Nor does it trigger requirements to have dedicated bathroom, kitchen or laundry circuits - if they were legal when originally installed and you are doing a straight replacement of the panel at one end of those circuits then you don't need to suddenly add more circuits to meet the latest rules. But renovate a bathroom at the same time and the rules will likely apply.
But your situation is a little different. It is not a heavy-up because you already have 200A service. With a heavy-up the utility would pull the meter and you would need a new meter pan and a new cable from the meter to the main panel, you don't need any of that. You need the meter pulled so that the main panel can be safely replaced, but the service is not changing and the feed (pole to weatherhead to meter to main panel) is not changing. Therefore, there should not be any need to satisfy any new requirements in the "weatherhead to meter to main panel" area.
All that being said, a jurisdiction and utility could make such a rule. But as I understand it, that would not be the usual way things work with changes in the NEC.