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I'm not sure I follow - how is that different than having every polititian/company ability to just create a website with a review and enter search results in that way?

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Those results are governed by page rank.

Google is essentially allowing people and orgs to bypass the ranking algorithm.

Not really - these posts are part of the knowledge graph box (which can already be controlled by a company if it's a company result). They aren't mixed in with the actual search results (although on mobile the knowledge graph box can appear above a search results depending on the search/context).

As per my understanding, the knowledge graph box is something output from an AI sort of system. A company can correct some results if they are factually wrong, I guess.

What Google is proposing now is for individuals and organizations to directly supply content for it to be shown on top of search results. Now who will check the information provided to Google? What is to stop a government from spreading false news on Google?

From the screenshots it looks guaranteed to be the first result.

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