I think that you are missing the definition of 'orientable along $A$'. I haven't got that book of Bredon to hand, but presumably 'orientable along $A$' means that if you move a local orientation of $M$ around a closed path that stays in $A$ then it will come back to the same local orientation. In particular, in the case when $A$ is a single point, then $M$ will always be orientable along $A$, regardless of whether $M$ is orientable or not, so the case that you view as wrong won'tdoesn't arise.
I agree with Denis T's interpretation of the notation $A*B$.