> Imagine if the real world operated that way.
The real world does operate in exactly that way, with a scant few exceptions. It's often even less scrutable than what I described.
> The police arrest you and throw you in jail for unspecified reasons and you're not allowed to know why or defend yourself.
Since you're saying this, it doesn't sound like you've had a lot of confrontations with police. (And if you ever do, I'd strongly advise against trying to 'defend yourself' from them.)
The police can and absolutely do arrest, intimidate, harass, and violently assault people for unspecified, fabricated or utterly bullshit reasons, and then release them (because they can't justify those reasons in a court of law, but they have an incredibly broad, completely unaccountable amount of inscrutable discretion that they can use to make your life a living hell.)
A store can absolutely throw a nuisance customer out, and ban them from returning, without specifying exactly how much of a nuisance they permit that customer to be.
Hell, even in a court of law, one of the most deterministic billiard-ball-newtonian-world aspect of our life, the ultimate decision of life or death, freedom or innocence is decided by an opaque group of 12 neural networks, each full of their own biases, prejudices, and each heavily influenceable by courtroom demagoguery. Who don't - and aren't required to - explain their decisions.
There's very few, very narrowly defined set of spaces in our society where the rules are clearly, fully spelled out, with little to no room for arbitrary interpretation, and where decisions can be scrutinized. They are an incredibly narrow exception, not the rule, and they tend to be more present in situations where the consequences of a mistake are more serious. (Questions of housing, credit, money, life and death.)
Unfortunately, access to a rented VM doesn't quite rise to that level of seriousness. It does, however, tend to offend programmers, who are both over-represented here, and often mistakenly think that the world is a fair newtonian-billiard-table. In reality, it's neither fair, nor deterministic.