The guide for formatting dialog here was in fact written by someone from the UK, and someone from Canada. Not Americans, although as one trained here in the States, I have no argument with any of it.
Thank you for answering my question. As my earlier posted link says, calling them UK vs American versions is a simplistic way as both can be used internationally. Based by these responses, the American version is the accepted one on this site, thank you for satisfying my curiosity.
We as story verifiers work hard to familiarize ourselves with both the UK (Commonwealth) versions and the American version of grammar and spellings. We accept both. As long as the dialogue punctuation is consistent it is accepted either way. If it fluctuates between one and then the other, then it needs to be corrected to be consistent.
There are several Lush verifiers representing the UK, Canada, Australia, and the USA. Actually several from each of those English speaking nations. We keep each other informed of our unique differences. Really grammar differences are minimal. Spelling differences are more common, but those are easy to recognize.
Thank you for your replies. There seem to be some contradictions as another friend has had a story removed for the same punctuation issue. Yes, they used it consistently throughout the story and yes, it was otherwise well done. The message they got only mentioned the use of punctuation marks outside the quotation marks and they were told it was well written.
I've advised both the person who inspired the original question and my recent friend to use the American version to avoid confusion.
The punctuation inside the quotations marks is the most common and seems to have the most academic support throughout the English speaking world, so you can't go wrong with using that one. Sorry that there has been some confusion.