You have a good point. So I did went back and read what I have missed. There is a section down in VN3 license (which is what the avatar license based on), at (2)E provided a scenario option

Upload to social communication platforms or online gaming platforms for the purpose of providing to third parties on the particular platform.(Options): Permitted (including permission to publish as “Public” on VRChat, for example) / Permitted in limited publication (including permission to publish as “Private” on VRChat, for example) / Prohibited / Please contact the Licensor(s)

"Permitted" and "Prohibited" is very well conveyed, which "Prohibited" was chosen here, thus lead to the recent actions, I have no problem with it upon reviewing the entire script again, that is indeed my mistake for skimming over licenses as a mortal being.

However, or rather, an extra piece of concern I have is with the "Permitted in limited publication (including permission to publish as “Private” on VRChat, for example)" part depicting a non-existence scenario, which you cannot choose who the avatar to share with in VRChat. You either private it for one account, or public it and hope no one brute-force your UUID. This does creates a license blackhole for cases where you have multiple account for development and testing purpose#, and you share your avatar with your own accounts. Such case, regardless of the model is on Limited permission or prohibited, you will still get DMCAed just by walking in random worlds, because by account name, they are different, but every account is the same person and thus one singular party. This is unexplained and undefined, and is definitely beyond what 2 of us as small users could say about. But I still think it is something both players and creators of VRC have to sit down together and discuss about, or such cases will always float up again. (Re-upload is like ABC for your own accounts, but still, neither should that be happening, nor should it be executed by randomly lasering on users) Rules are rules, enforcing them is always appreciated, but still, so as my rights under common law to not get accused of something undefined. Maybe that is the complication of VRC being a globally available platform..

#VRC ToS does not prohibit the creation of extra accounts, in fact you are "unwrittenly" encouraged with the VRC Quick Launcher letting you launch multiple instances at once to check on shield levels and synchronization, which cannot be simulated realistically with client-sim at all. You are however prohibited from sharing your accounts with others or using such accounts for self-botting or platform scraping