The developer goes into the situation in a reddit thread.
I had got the same stalkerware policy. The problem was not the app itself but the description. In my case “friend” and “track” or “monitor” keyword can’t be used together.
If your app description includes “monitor” or “track”, don’t include any person related keywords such as “friend”, “people”, “human”. If not, google considers your app can monitor the somebody’s activity.
Stupid take to be honest, real people getting trafficked and stalked, domestic abuse victims being tracked for control by the abuser, and you think that's fine because google has that data about you even though nobody can use it so why shouldn't all apps be able to? Go to a women's shelter, touch grass.
This issue is far more nuanced. No it's not good Google has that data on you.
No it's not fair that automatons caused a small developer to have their entire amount destroyed without a proper review.