Although framed as a security improvement, I'm sure it's also a massive support burden. When you have hundreds of thousands or millions of users, at some point you probably have support staff who do nothing but helping users reset their MFAs all day every day. It seems fair not to do this for free users. Some services gate MFA to paid accounts which seems like a worse trade-off.
With free users you also have less information available to you as a provider in determining if the reset request is legit or not.