eh what?
f95 wants keep a low profile when it comes to stuff like this to prevent governments from shutting their website down.
The above quote from your post is why the rule exists, but more often it is because of bickering over what counts when the staff has usually already voted to allow the game in question that a game gets banned after it has a thread. If it was a ban for violation of rule 7, we would never even see the game here, it never would have gotten a thread. This does not take into account games in development that add loli content part way through and that already got a thread, in which case the vote happens at the time the loli content is meant to be added and the game is either approved in full, the content is exiled to patch only, or the game becomes a violation depending on the ruling at that time.
The game HAD been banned by rule 7. It's ridiculous to bring it up now though seeing as how there's a bright orange disclaimer in that thread about how it was brought back.
On topic: This game is decidedly worse than the other one uploaded at the same time imo. I can imagine that if I hadn't played them back to back I'd probably think this one was "fine" but if you're going to play one, play the other imo.
I am not aware of it and I've been seeing it get updates for a while now. It was probably a mistake brought on by the loli vs anti loli war that rages every time a new one pops up. EDIT: mistook which game was referenced, my fault.