I don't know about this company specifically, but I know it's common for the government to essentially act as an incubator for tech companies, so the concerns probably weren't unwarranted.
I guess even with the switch, some people probably verified prior so it likely has some impact on X still -- and maybe this is actually what moved the needle internally, since the users were calling it out as a concern for quite some time.
I had no clue uber and tiktok used them though, so that's good to know - thankfully I haven't given them my biometrics as of yet.