The first part is clear, and I take that to mean no arbitrary limit was imposed via firmware, the only requirement is FAT32 formatting. That is an important distinction because FAT32 places a 4GB limitation on the size of any particular folder.
The second part is not clear, but I'll go ahead and clarify it for you, the SDXC spec starts at cards 64GB in size, so your example is invalid as 32GB cards are not SDXC (extended capacity), they are SDHC (high capacity). What you really should be saying is microSD cards need to be formatted FAT32, you can leave off the HC or XC distinction, and also note that most cards do ship FAT32 from the factory and thus require no reformatting at all.