I do think they had RAS here, but in and of itself, OC is not RAC, even if it's in hand.
Consider LGOC for a minute. I know its off limits, but for the sake of this discussion and the legality of OC, it bears some relevance. If you are LGOC, we know it's legal. You are supposed to have it on a sling over your shoulder, but remember there is no law requiring it. Similarly, there is no law requiring one to have a pistol holstered either. Carrying either, in hand, is legal as there is no law against it. We know that brandishing would be (at least in Michigan) determined by a reading of the dictionary as there is no case law. If a person was not being threatening by carrying a firearm in hand, then they would be guilty of nothing, merely exercising a right.
Some may say that it is stupid, but then again, some think that carrying or even owning a gun is stupid as well. Perhaps the person had a reason for carrying in hand.