Without seeing the full context of the bulleted statements in your book, it appears bullet 1 is a special case of bullet 2.
Bullet 1:
The first bullet appears to be a statement of the conservation of mechanical energy, which states the variation in the sum of the kinetic and potential energy of a system equals the net external (to the system) work done on the system, assuming no dissipative forces (e.g., friction) acting within the system. Or
$$\Delta KE+\Delta PE=W$$
For an isolated system, $W=0$ and $\Delta KE+\Delta PE=0$.
One reason why the statement is restricted to mechanical energy is it doesn't take into account the other means of causing a variation in energy which is covered in thermodynamics, namely heat, with is energy transfer due solely to temperature difference.
The other reason is it only applies to the kinetic and potential energies of objects at the macroscopic level, i.e, the visible motion and position of objects with respect to a particular frame of reference. An example is a ball having kinetic energy and gravitational potential energy due to its velocity and position with respect to the ground. It does not cover kinetic energy of the motion of the molecules of the ball (reflected by its temperature) or the molecular potential energy due to the intermolecular forces of the molecules of the ball. Those energy forms are the internal energy of the ball.
Bullet 2:
The second bullet is a statement of conservation of energy of all forms, mechanical energy plus internal energy, not just mechanical energy. By including internal energy it includes energy at the atomic and molecular level. For example, when friction occurs in a mechanical system, mechanical energy is lost due to conversion into internal energy reflected by an increase in temperature. So while mechanical energy is not conserved, total energy of the system is conserved. Consequently, bullet one can be considered a special case of bullet 2.
Hope this helps.