I think the sense of it is that if a Jesuit, or any member of a religious community, order, etc, becomes a bishop, or higher office, he no longer is bound by obedience within that religious community. The newly appointed bishop of Anytown is no longer subject to a provincial or General of that order (Jesuits, or other) because he is exclusively under the Pope now. (I suspect, but don’t know, that he no longer would be able to function as a provincial or General of his order anymore either, while he was actively functioning in the hierarchy). I know Archbishop Lefebvre was both a bishop, and official in a religious order prior to Vatican II, but I don’t know if he was over a specific see while he was an official in his religious order.)
The late Cardinal Avery Dulles, SJ, was already retired and was named as cardinal as an honor, with no ecclesiastic assignment as “cardinal” that I know of. I think he continued living in community at Fordham after being named. What I don’t know is whether
a Franciscan bishop with an active assignment in the hierarchy, such as Cardinal O’Malley, could live “in community” after becoming bishop. The rules for Jesuits may be different from Franciscans.
Obviously Pope Francis, or other religious who become bishops, would still practice the specific devotional life from their order’s tradition.
