The sky hasn’t fallen?? Have you read https://www.nytimes.com/2022/08/21/technology/google-surveil... ?
https://borncity.com/win/2020/08/16/microsoft-kontensperrung...
This is why I explicitly make on-site backups of anything that's in the cloud and don't store my passwords with Apple. If they suddenly decided I had CSAM for some reason, I'd be locked out of everything.
Other than the person having their Google account suspended which is a separate issue from the surveillance I see zero issue with the events as they happened. In a bygone era where you had to get photos developed I would have expected the 1 hour photo employee to do the same.