I understand that this hint was recently added, but I think the author of the suggestion wasn't aware of the reason this card (probably) came to be. It is definitely correct that cubital tunnel syndrome would present the same, but the key difference is the lack of other symptoms that would suggest cubital tunnel as the culprit. This card only mentions loss of sensation over the palmar surface of the hand, but not the dorsal surface. I do agree it would probably be more accurate to reformulate this card where the symptoms of cubital tunnel syndrome are suggested due to the involvement of the the dorsal cutaneous branch of the ulnar nerve, and then asking where is the injury, since a distal (i.e guyon canal) would not affect the dorsal cutaneous branch so the sensation in the dorsal surface of the hand would be spared. This is what this note was trying to get at, so adding a hint such as distal basically renders this note useless.
I have a feeling this note was inspired by a Q from Amboss qbank.