Useful data from a Beatie subsidiary, here...
https://www.btcables.com/our-products/data/It was recently suggested in another thread that CW1308 is actually Cat 3. I have no reason to doubt that supposition, so let's take it to be the case.
Now, according to that BT cabling data, Cat 3 is specified for data rates of 16Mbps. Fine for ADSL1, even for ADSL2, but you can see why BT might want to discourage its use for VDSL, Cat 5 being the first that is specified for Infinity Data rates.
According to the BT link, Cat 3 and 5 both have the same characteristic impedance, so no major problems there. The main difference, as far as I know, is twist rate - which is probably what BT are referring to when they say
It provides much improved shielding from interference, helping you get the fastest broadband speed possible for your line.
Of course, using Cat 5e for extension wiring doesn't undo the damage of having Cat 3 from the cabinet. But two wrongs do not make a right, so I can see why they'd want to encourage Cat 5/5e for any new wiring. Especially in the end-users premisses where, arguably, most of the interference will be encountered.