I'm actually not sure that it works that way.
I watch a lot of YouTube content that's outright demonetized, and demonetization consistently correlates with recommendations and views plummeting as well. Yet this same content still shows up in my recommendations. My theory is that for free users, YouTube prefers to recommend videos that are monetized, because obviously they have a vested interest in doing so. For premium users, YouTube doesn't care about ad revenue--in fact, they may even have a slight incentive to recommend demonetized videos because then they don't have to pay a share of my premium subscription revenue to the creator. Instead, they're optimizing for keeping me interested enough to maintain my subscription.