Initially, this applied to every single update, every single reinstall, and anything that changed your IP. Every load of a unity web game.
All of those counted as a new install, and this was stated to be intentional by unity to all the journalists who reached out and by their internal developers on the support forum.
So the long tail of things like your customers buying a new phone == old apps get transferred == that counts as a new install and you get charged. Reinstall a game from steam or change the install drive or directory? Same thing.
Beyond devs and game types that are affected by legitimate usage, there is the clear problem of malicious installs (what a phrase) and abuse. Unity's answer to that was that proprietary secret internal models would solve abuse, but also that developers would have to reach out with proof of being falsely billed after it happened. And just kinda hope that unity would have the support and billing staff to ever actually deal with that problem.