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>> They could also manipulate the mechanical arm to hit the vehicle or spew water continuously, making it difficult for a trapped occupant to exit the car

They've simply extrapolated on this capability to make the headline more clickable

When someone lends you their robotic car wash for you to test a theory, generally you don't want to wreck their robotic car wash.

From the article:

Rios says he became interested in the car washes after hearing from a friend about an accident that occurred years ago when technicians misconfigured one in a way that caused the mechanical arm to strike a minivan and douse the family inside with water. The driver damaged the vehicle and car wash as he accelerated quickly to escape.

It is not explicitly said, but I suspect that the arm smashed a window and that allowed the water inside the van.

Sounds very Invader Zim-like.

I did not get that either, but I can see a way to do it: use the spray arm to smash a side window. They're not laminated and shatter easily.