If you read a bit further in the EEVblog BM235 manual, you'll find your answer to this behavior on page 26:
"Not specified at <8VDC [I think they mean 8VAC]
Threshold: > 1VAC nominal
Input Impedance:
Initially approx. 2.1k, 164pF nominal; Impedance increases abruptly within a fraction
of a second as display voltage is above 8V (typical).
Impedances vs display voltages typically are:
12k @100V
100k @300V
240k @600V
580k @1000V
NOTE: The meter will NOT be low impedance for voltages under approximately 8V
DC. It will revert to the standard 10M" [Who knows exactly what they mean here, see below.]
There is a more accurate explanation in the current version of the Brymen BM235 manual on page 19:
http://www.brymen.com/images/ProductsList/BM230_List/BM230-print1-woCATII.pdf"Not specified at <1VAC
Threshold: > 1VAC nominal
Approximate input impedance (//164pF) for reference:
At direct input </=50Vac (typical) from quiescence:
>8M@ < 5.6Vac
22k@ 7Vac
12k@ 8Vac
2.6k @ 50Vac
At direct input >>50V (typical) from quiescence:
Initial impedance is approximately 2.1k. Impedance increases abruptly within a
fraction of a second as display voltage (hard signal) is much higher than 50V (typical).
End-up impedances vs display voltages typically are:
12k@100V
100k@300V
240k@600V"
SO, that is the reason for the 7V AC reading. This specific ghost voltage and the input impedance behavior of the BM235 are at equilibrium at around 7V AC.
I could make the case that the BM235 LoZ mode is at minimum misleading. If it's not LoZ below 7V, then the label is essentially incorrect.
The BM789 LoZ mode behaves more like what we would expect.