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It wasn't "because of an incident", it was because they were required to submit a report about that (or any other) incident, did so, and then the security footage proved that they straight up lied in the report about that particular incident.

If they just told the truth, they wouldn't lose their licence, but they couldn't even oblige by this piss-poor regulatory action in which they were required to do nothing but self-report any incident.

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I believe you, but that really highlights how dangerous small regulatory overheads are. One - quite reasonable - frame on what you're saying is that there was no problem with Cruise except they failed to engage with the bureaucracy properly on some relatively minor points.

That sort of behaviour should be an aggravating factor if they're actually misbehaving. If they aren't, then it is poor policy to try and put them out of business over paperwork.

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