This is honestly the exact reason I haven't tried to develop a facebook app or extension... I've heard that the smallest mis-step can get your account suspended like this. Not like a 'here's a warning' but 'you read a variable you shouldn't have, now your whole account is deleted'.

This isn't usually a problem, except Facebook has a pretty unique position in our society. It might be the only social media some of our immediate family have. It's the de-facto social media presence for some smaller community organizations (like parent groups) and hobby groups. A ban from Facebook is a lot more deeply impactful than being banned from, say, gmail or something.

I could understand if they sent the developers a cease-and-desist or initiated some sort of legal action with this as a potential consequence. I could even understand blocking the app until it was resolved. But actually searching up the dev team and banning their personal Facebook accounts for something they're building on Instagram...

This makes it so much scarier because Oculus is also Meta, and the community there is still heavily reliant on developers to grow since Meta has sunk so much money into it and it still hasn't quite found its footing in the market. Do they think more people are going to develop for it if a potential consequence is their facebook account will be perma-banned as a first-resort? Would you be willing to experiment on that platform?

Anyways, I'm no gazillion-dollar monopoly, but it seems vindictive more than good business sense.