Logging PIC time during Instrument training

Here's an except from AC 61-98A:

13. SOLO OPERATIONS IN AN AIRCRAFT FOR WHICH THE PILOT DOES NOT HOLD A CATEGORY AND CLASS RATING. A person may not act as PIC of an aircraft that is carrying another person or is operated for compensation or hire, unless that person holds a category and class rating for that aircraft; however, subject to the previous restrictions, a person may act as PIC of an aircraft in solo flight without holding a category and class rating appropriate to that aircraft if he or she has received the flight instruction and endorsement required by FAR Sec. 61.31(d), or has soloed and logged PIC time in that category and class of aircraft before November 1, 1973.

a. The instruction required by FAR Sec. 61.31(d)(2) must be in the pilot operations required by FAR Part 61, appropriate to that category and class of aircraft for first solo, and must be given to the pilot by an appropriately rated CFI who, upon finding the pilot competent to solo that category and class of aircraft, so endorses the pilot's logbook. The format for the required endorsement is contained in the current issue of AC 61-65.

b. CFIs should be aware that the provisions of FAR Sec. 61.31(d) were intended to facilitate a pilot's need to acquire solo flight time in the pursuit of a category and class rating in that aircraft. This FAR section was not intended to encourage unlimited or unrestricted solo operations for an indefinite time period. Accordingly, the CFI should determine the intentions of any pilot seeking such an endorsement and should consider such requests only in cases where pilots are seeking to acquire additional category and/or class ratings. In any case, CFIs should consult FAR Sec. 61.87 to determine the criteria for first solo, and may also wish to consult the appropriate PTS before advising pilots on what will be required to obtain a solo category and class endorsement. After providing the required instruction, a CFI may want to consider the need for an endorsement which restricts the pilot's operations to whatever extent the CFI considers necessary in the interest of safety. For example, the endorsement might limit the pilot to local operations only, or to flight in day-VFR conditions only. Finally, the CFI may want to include an expiration date on the endorsement which coincides with the date by which the applicant is expected to have completed the practical test. Before undertaking the instruction leading to such an endorsement, the CFI should explain to the pilot the instructor's prerogative to issue an endorsement containing restrictions.
 
You said, "The PIC endorsement is functionally equivalent to the solo endorsement for a student pilot."

But this endorsement says, "rated pilot." I fail to see how it is functionally equivalent being that a student pilot is not a rated pilot. I see its application to rated pilots to fly solo as it allows them to be PIC which would give them the right to operate solo.
 
Right now I am trying to see how one could use the PIC endorsement in place of or as the equivalent of a solo endorsement. Tgray quoted that above as a close FAQ but still nothing definitive.

To me it would seem the solo endorsement is used for pre private (non-rated) training to allow solo where as a PIC endorsement is used to allow solo for rated pilots.
The solo endorsement for "preprivate" pilots is in 61.87 which is part of Subpart C of Part 61 and only applies to student pilots. A private pilot is not a "student pilot" and the 61.87 endorsement is inapplicable.

If you want something more definitive, check out the sample safe-harbor endorsements in AC 61-65E. The applicable one for the situation being discussed is

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62. To act as PIC of an aircraft in solo operations when the pilot does not hold an appropriate category/class rating: section 61.31(d)(3).

I certify that (First name, MI, Last name) has received the training as required by section 61.31(d)(3) to serve as a PIC in a (category and class of aircraft). I have determined that he/she is prepared to serve as PIC in that (make and model of aircraft).

/s/ [date] J. J. Jones 987654321CFI Exp. 12-31-05
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So, if you're "trying to see how one could use the PIC endorsement in place of or as the equivalent of a solo endorsement, the short answer is, "that's how the FAA sees it."
 
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