The whole point of the arrangement is the outputs' Vbe is factored out. To be exact, it's reduced by a factor related to the driver Early effect. Which will be pretty tiny, and also the output voltage range utterly dominates over that variation (to be specific: Vce(driver) = Vout - Vbe(output) - Vee).
Jokes aside, it helps a lot with stability. Imagine output overshoots a little bit. How to sink current? If not biased into AB, the the opamp would need to go 1.4V down to make output stage sinking, and then 1.4 again. This creates oscillation.
I mean.. the choice isn't class C or AB, I don't know where you're getting that from... It's a sliding scale between AB and C.
What's commonly called "class B" is usually just something convenient for the devices, like zero-(voltage-)biased triodes that happen to run at low Ia at chosen B+; or transistors with complementary bias diodes (and no extra slop taken up by resistors or Vbe-mult.) so they're just on the threshold; or etc. It's not that there's NO conduction at idle, that's impossible, we don't have ideal on/off* amplifying devices. Strictly speaking, everything is a little bit class AB: even the no-bias complementary emitter follower draws leakage current.
*In the sense that any output current is "on", i.e. where the current is proportional to (or at least one-to-one dependent upon) the input. But "off" is off, current ~= 0. A ReLU function for example.
A more specific definition of class AB is biasing such that gain of each device at idle is a bit less than half the gain at peak output: therefore as one cuts off and the other turns on harder, total gain remains fairly stable and distortion is minimized. This isn't exactly easy to do with BJTs (gm ~ Ic so you're basically looking at 50% class A) but is feasible with emitter degeneration (limits gm for large signals), or FETs or tubes (where the square or 3/2 power law limits gm), and then a lower idle point can be chosen.
And Vbe is far from the only way this circuit can be biased. It can be done in piecewise fashion, like with a resistor from input to output: then the op-amp drives the output directly, for small currents, but activates the (class B/C) output stage for larger currents. Loop gain depends on load, which might not be desirable for compensation purposes, but it trades off with precision at low currents and low idle current.
Not to mention class G or H or whatever kinds of schemes -- of which the traditional tap-changer PSU is a crude model. A proper realization does the changing ~instantaneously so the output tracks input perfectly even at high rate of change. Obviously, the ~10s ms of relay plus charging supply caps can't be done seamlessly; granted, the momentary loss of output tracking might not be noticeable in a mere PSU.
Tim