DoD, Does it only apply to the Increment?

I am trying to get clarity regarding the coverage of the Definition of Done (DoD). I seem to be getting different responses and I thought I'd start a new thread dedicated to this and re-ignite this conversation.

So, my understanding is that the DoD is applicable both at the Product Increment level and also at the Product Backlog Item (PBI) level.

Here's my reasoning with lines from the Scrum guide.

When a Product Backlog item or an Increment is described as "Done", everyone must understand what "Done" means.