A VPN that only works with Safari and apps using the native HTTP libraries to make unencrypted HTTP requests.
This whitelist is implemented using the regular macOS/iOS per-app firewall. Not only this is accessible to users, but the whitelist matches based on the Mach-O UUID, which is an arbitrary number put in by the linker...
The restriction on which apps can use iCloud Private Relay is trivially defeatable.
Private Relay hides your IP address and browsing activity in Safari and protects your unencrypted internet traffic so that no one-including Apple-can see both who you are and what sites you're visiting
They made it a few years ago they all apps had to use encryption. Long before private relay came out. I have wondered if this was why.