I assume because either their legal department, or it sounds like maybe this new exec Varma, thought that the previous language opened them up to potential liability in some jurisdictions.
The brightline for me is when the terms actually become onerous. If you were an extreme privacy nerd you were already using a fork anyway, for the average user there’s nothing in the terms that’s threatening yet IMO.
It looks bad, but they’re still definitely not conventionally attractive or thin. They just don’t look the same. This is just nostalgia vs. capitalist franchise exhaustion.