The standard $\varepsilon$-$\delta$ definition of a limit of real-valued functions goes as follows:
Let $f\colon A \to \mathbb{R}$ be a function where $A\subseteq \mathbb{R}$, and let $c$ be a limit point of $A$. Then $\lim_{x\to c}f(x) \to L$ if $\forall \varepsilon > 0, \exists \delta > 0$ such that $\forall x\in A,$ $0<\lvert x-c\rvert <\delta \implies \lvert f(x)-L\rvert < \varepsilon$.
I believe this is the standard limit definition. However, I have seen in several places an alternative definition that - instead of requiring $c$ to be a limit point as above - demands that the domain $A$ of the function contain a punctured neighbourhood of $c$.
My issue is that I'm not sure these definitions are equivalent. If anything, the latter definition appears to be more restrictive that the former; for instance, consider the square root function. It is well-known that $\sqrt x$ is continuous at $x=0$. But if one resorts to using the second definition, $\lim_{x\to 0}\sqrt x$ would actually be undefined because the domain does not contain a punctured neighbourhood around $0$.
So, my question is: is there any (perhaps historical?) motivation for using the second definition? Have I maybe missed something? Thank you.