I think the rule forbids using the person’s likeness in solo shots. I believe if there are more than three people in a picture or video, they are allowed to use the person’s image.
You can imagine what would happen if there was a picture of the entire cast of a big musical, and every time an ensemble member left, they expected the production to change the photo. I don’t think this rule-of-three (if it’s still valid) addresses the issue very well. There should be a better way to determine whether someone is recognizably being used to represent a show when they’re no longer in it…