Hetzner was always like that, even before the AI wave. They lowball people with cheap pricing and arguably this attracts a lot of "unwanted" people, so Hetzner always acted strict on such issues.

Last time I used them (pre-2020) they were going as far as requesting customer's ID and rejecting them on the basis of country of origin, and I assume this also includes facial features that may resemble "an average scammer". Obviously this did not happen to European/American IPs so they never faced such issues, and as such this practice was invisible to the world.

I can say for sure OVH and Scaleway would try to negotiate with you before erasing your data - this may have changed over the years.