Chat Control 1.0 is essentially the existing derogation that allowed cloud providers and messaging apps to do what they do in the rest of the world - voluntarily scan shared media against NCMEC hashes and novel CSAM image classifiers.
We're not talking about E2EE here, we're talking people sharing CSAM on Kik, or Snapchat, or sending it via gmail, or uploading it to DropBox etc. etc.
It also allows inclusion of client side scanners in E2Ee messengers. It seems that nobody did it (yet), but as far as I can tell, it is within the scope ofthe exception.