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Not that I am arguing in favor for how things currently work re Apple's ecosystem, but from a quick look it seems like these apps bait you into paying and the developer is just completely ignoring that part. I think that's what Apple is not fond of.

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The question is, why did Apple approved the app in the first place?

This was an update and the app was making money (according to the article).

If that's the case, Apple should refund or pay out the $108K before closing the account with that explanation.

Apple should give this developer the benefit of their shady practices? That just encourages more apps like this.

There are all sorts of crap apps with dark patterns. Apple can say, "We no longer condone this behavior," but that does not give them the right to steal the current money. Return it to the scammed or give it to the developer.

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