It does look like the author just lost access to docs they shared with others, not their entire account. Author is currently appealing.
We have seen this kind of thing in the past. Drive has to be careful, as people will use private drive links and doc links (could have embedded images) to share explicit material that may be illegal. From my understanding, Google will start running some kind of automation against things when they are shared with other people if they might contain things that could be illegal. I have no idea what the heuristics are, or how often they get it wrong. But they are kind of between a rock and a hard place.
Googler, opinions are my own.