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Apple's real policy is "don't do things that reduce Apple's profits". Everything else is mere justification.
I wonder why that guy isn't an App Store manager anymore - whether he voluntarily left or not - because his statement is a bit misleading. Apple Arcade doesn't violate Apple's policies because their policies only disallow game services that don't allow the content within the service to be reviewed by Apple. The concerns here include, for example, the app itself being registered for all ages but including mature games that are available. Streaming services trying to get on the App Store ran into the same issue when they refused to give Apple some way to review the games that they were going to stream. Since the games themselves aren't running on-device, there's no code or content that can be reviewed within the app. It's exactly why apps like Netflix and Amazon Prime Video can exist on the store. Needless to say, Apple Arcade is literally only games that Apple can review so how does that violate Apple's own policies?
What does it mean to review the content on Netflix? Do Apple reviewers sit and go through every single movie and show on the platform? Or do they watch every single Youtube video?