A more plausible explanation is the requirements and obligations of those markets are ambiguous or open-ended in such a way that they cannot be meaningfully limited by a license, per the lawyers they retain to create things like licenses. Lawyers don’t like vague and uncertain risk, so they advised the company to reduce their risk exposure by opting out of those markets.
Since the law is very well developed in the EU, I think the people who wrote the license were just lazy.
So, they reduced their liability by prohibiting usage of the model to show those jurisdictions' decision makers they were complying. I considered doing the same thing for EU. Although, I also considered one mught partner with an EU company if they are willing to make models legal in their jurisdiction. Just as a gift to Europeans mainly but maybe also a profit-sharing agreement.