As the commenter upthread conjectured, this is indeed perfectly isomorphic to fooling a user into loading and interacting with a faked web page. That's a real threat! But it's clearly not a new threat with PWAs and IMHO this article is mostly just spun clickbait. This isn't remotely a novel vulnerability.
If you look at the screenshot, it's a perfectly valid interpretation for a non tech-savvy user to interpret that as "realhealthysnacks is asking me to install a legitimate Microsoft application".
Now change the simplified example for a real one from a SaaS product login page with several "Login with ..." buttons, and one of them triggers this.
This isn't "clickbait". This author is a known security researcher. The word "new" or "novel" doesn't occur in the writeup. They are simply documenting how something works.
They've been writing about this type of thing for years now.
Perhaps the PWA forces an overlay of the real apex domain at the top or in a top corner?
For most PWAs, the title is simply the apex domain without the TLD with some kind of capitalization. There are a few slightly more complex cases, such as Google Maps (google.com/maps) and YouTube Music (music.youtube.com). Even in these cases, there is an obvious relationship between URL and title.
You could try the manifest data, (the data for the PWA app) tied more to the html and dns. Making it harder to impersonate other sites.
You could also go a more extreme route and have something like PWA app signing like other kinds of apps.
Using a browser-integrated password manager or passkey will usually prevent this attack, though.
I think that this is a fairly legitimate attack vector and it's sad because I really want to be able to hide the url bar in my PWAs through custom styling to make it look more like a real native app.
Also the thing about the URL won’t have much practical difference for the user. The reason is that a lot of the flows can redirect through different domains. For example, when I sign in with Google into a third party site, I often see a redirect through the YouTube domain.
So users are not expecting full fidelity to the domain.
However, as with every phishing attack, the user must ignore small (security related) hints.
But since the trick requires the user to go to a malicious website to install this app, it seems to me that the user might similarly be tricked into entering credentials on that website.
You would enter your credentials on something that (according to a url bar) is Facebook.com