Honestly I feel like "training" is a bit of a distraction at this point. For a lot of types of content RAG-style search is much more important.
I imagine many of the orgs that are blocking "training" don't understand the difference between training and inference-time tool-based context extension (which really needs an agreed upon name, it's hard to talk about right now).
My understanding is that it also affects RAG ("grounding" in Google terminology):
> [...] and for grounding (providing content from the Google Search index to the model at prompt time to improve factuality and relevancy) in Gemini Apps and Grounding with Google Search on Vertex AI.
So they seem to be blocking both training and RAG while still allowing search engine indexing.