According to the story, Apple have stopped Google employees running Google's "Gbus app for transportation". So yes, it's about what Apple allows people to run on their own devices.
They can still run that app by signing it themselves with a developer account, although that's not a very convenient option. And no, this is still about what Google allows its employers to run on their corporate devices (and Apple now taking this right away from them), as users wouldn't be able to sign that app with enterprise certificate by themselves.
XX% of Google employees don't use Mac as their laptop platform
XX% of Google employees have a locked-down Mac that isn't allowed to run XCode or locally-compiled binaries because their job role isn't in Engineering
You can only sideload up to a certain number of apps (3 IIRC), only for seven days at a time, and only using certain APIs (cannot for example use notifications), all of which would pose serious limitations.