The RowLock (or pageLock) hints just say what the locks should start as, nothing more. In this case they'll start as row, but once past the 5000 or so locks acquired, will escalate.
What the explanation also doesn't say is that escalations are always1 to table. SQL never escalates to a page lock, when escalation is triggered it is to table.
(1) The one exception is 2008, with a partitioned table where the table's escalation setting has been changed to AUTO. In that case (and only that case), escalation will be to the partition only, not the table.
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