What's the US Customs ruling in question?
> This update was enabled by a recent U.S. Customs ruling.
It appears the patent is for "User-Worn Device for Noninvasively Measuring a Physiological Parameter of a User". So Apple is simply moving the logic to a non user-worn device - like a phone - to get around the problem. (this is my quick read / conjecture)
Here is the original patent https://patents.google.com/patent/US10912502B2/en