My book is An Introduction to Manifolds by Loring W. Tu.
From Definition 8.1 and Remark 8.2 (and definitions from Section 2. see below), we have that
A. $T_pM = T_pU$
B. and $C_p^{\infty}M = C_p^{\infty}U$, where (B) implies (A).
I believe both equalities are really equalities are not isomorphisms (see this question, my previous question and my other previous question).
This question says the differential of inclusion map of smooth manifolds is an inclusion map of tangent spaces.
Question 1. If A and B are indeed equalities, then is it really that $T_pS \subseteq T_pM$ (this may or may not be vector subspace, but I think it is) for $S \subseteq M$ a regular/embedded submanifold and not merely that $T_pS$ is (vector space) isomorphic to a vector subspace of $T_pM$ (so $T_pS$ is embedded, in the vector space sense, but probably equivalent to the manifold sense, in $T_pM$)?
Question 2. If A and B are indeed equalities and the answer to (1) is yes, then, then how do we see this from Definition 8.1 and Remark 8.2 with $C_p^\infty S$ and $C_p^{\infty} M$?
I think I can kind of see this geometrically with $S=S^1$, $M=\mathbb R^2$ and $p=(1,0)$ with $T_pS^1$, as the vertical line isomorphic to $\mathbb R$ with $p$ as origin, being a vector subspace of $T_p\mathbb R^2$, as the plane isomorphic to $\mathbb R^2$ with $p$ as origin
but I don't quite see how a map $D:C_p^{\infty}S \to \mathbb R$ is also a map $D:C_p^{\infty}M \to \mathbb R$.
I think we somehow do some kind of smooth extensions, but most of the smooth extensions I've encountered are from open submanifolds or open subsets are not arbitrary regular submanifolds.
Maybe $C_p^{\infty} S \supseteq C_p^\infty M$ or something.
Question 3. If (A) is merely an isomorphism and not equality, then why exactly? Is it actually that (B) is also merely an isomorphism and not equality, and if so, then why exactly?
Note: Other definitions of tangent space of submanifold seem to be explicit in being subsets of tangent spaces (at the same point) of the original manifold. See the (embedded) submanifold part in this question (on immersed submanifolds).
Also: Exercise 11.1 seems to implicitly and casually assume that $T_pS^n \subseteq T_p \mathbb R^{n+1}$ (and so proceeds to discuss a condition on how certain elements of $T_p \mathbb R^{n+1}$ are also elements of $T_pS^n$)