It’s so if an app is showing a password or bank account number or other piece of sensitive information it doesn’t accidentally end up in a screenshot. I think there are other places sensitive information won’t show.
Bluesky, and apparently others, are abusing the functionality for advertising purposes.
I think it’s a good thing it’s there. This functionality should be easy for apps.
I’d say this is one for app review or an App Store rule. But we all know those are a total joke.