I think it's more likely that their flagging is heuristic based and could easily defeated by a malicious extension author and giving detailed feedback makes reverse engineering the rules trivial.
Law enforcement has a solution for that: Do tell people what the rules are and what they are doing wrong. Don‘t tell them how they got caught and what methods were used to catch them.
Telling people that they are going to be severely punished within days by a very powerful global entity, without telling them which specific rules they are in breach of or what they have to change is a dystopian nightmare.
Being audited isn't an explicit accusation that you've violated anything either; at best, it's an implicit suspicion to which the tax authority is fully entitled to probe and we as taxpayers are given reasonable opportunity to corroborate claims.
Absolutely. My point is simply that you can tell people what the rules are and which ones they may have broken without revealing absolutely everything about how you detect any malicious behaviour.
> flagging is heuristic based and could easily defeated by a malicious extension author
Well, if the reason is the "https://*/*" permission or something like that, and it is flagged and reported automatically, and everyone learns not to use it, it's a win-win. Benign extensions will have smaller targets on their backs, and malicious extensions will become less malicious OR will have to jump through hoops to achieve what they're trying to achieve (and will become easier to detect).