Different towns have different rules. My shitbox town, the one just south of yours, will almost always issue restricted the first time and lift restrictions (if requested) on renewal. To our immediate east, Malden never issues with restrictions. Boston seems to usually issue restricted and even seems to maintain the restriction upon renewal in many cases. Somerville will usually issue restricted if it's your first LTC and you've been a resident for less than a year, but will usually lift the restriction after a year. Several other towns follow a similar practice.
And that's the biggest problem, besides the license itself, it changes from town to town. It should be clear and state wide. Everyone should be able to read the law and know what they will get before ever applying. If you're going to have a licensing system, which is a separate issue, at least make it fair.