During my military service there was never a policy stating the .50 BMG could not be used against troops. This persistent myth started some time after my retirement from the US Army in 1979.
By the late 1980s the myth was so widespread that USMC and US Army intructors were teaching it as fact. The Marine Corps Gazette published an article debunking the myth that a .50 BMG could not be used against troops.
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More recently, instructors at Marine Corps Recruiting Depot Parris Island and at The Basic School were teaching that the .50 caliber machinegun could not be used against ground forces.
Instructors at the U.S. Army Infantry School, apparently laboring under the same impression, resolved it by teaching that:
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The .50 caliber machinegun can be used against enemy military equipment, but not personnel. So be sure to aim your .50 caliber machinegun at the enemy soldier's belt buckle.
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http://www.mca-marines.org/gazette/killing-myth