I am confused. If this was a well know vanilla bug that was for whatever reason left in classic; I find it hard to believe this was harmless, unintentional and not a use of an exploit.
The fact they reported it and asked for permission is a joke.
Clearly you have 2 sets of rules and standards for players. Its fine most people assumed so but dont try and sugar coat it.
Just come out and say it “if a streamer makes us money, they get a pass.”
Your terms of service and unilateral enforcement of them is a total joke. So are you Lore.