To be clear, this is continued enforcement for years-old regulation. The feature is only enabled in the US where it is required.
The implementation is changing from cloud-based matching (which requires photos to be readable by their cloud infrastructure) to local based matching with threshold tokens (which would allow them potentially to be in compliance while making the system E2E encrypted w two additional key release mechanisms (key escrow via separate audited HSM systems, the given threshold disclosure of the image encryption key)