The link for where this writer received his info-
View: https://twitter.com/DavidLeninhawk/status/1765527442796503280
The reason why Tubi was asking for edited version, is laws in certain states,
Adult Payment Processing & Age Verification Laws
This is the Florida version-
Websites would be prohibited from retaining personal information for any time longer than necessary to verify age. Websites could be forced to pay up to $50,000 per violation of the law, and could be sued for court costs and up to $10,000 in damages
for not blocking a minor's access.
So since free services do not verify the age of it's subscribers, they need to edit out the nudity, so not to run afoul of certain state's laws.
Other states with similar laws-
Mississippi, Texas, Indiana, and Utah
So pay services like Paramount, MAX are fine, with ads or not, because they verify the age of who is subscribing with the payment info.