Doesn't look that unhinged to me.
An in-app notification saying 'your access ends on X date and here is who you should contact if that isn't what you want' is exactly what I'd expect.
They also send an email with a template to send to the IT department
The thing that didn't happen does sounds reasonable.
I think "unhinged" is a ridiculous word for it. They aren't crazy.
"Outrageous" is better. This will work on a lot of people, and they really will email their managers, because they're sheep. But it won't actually change the managers' minds for the positive. If I got wind of a plot like this against my decision, it would absolutely convince me to stay the course.
If the employees want to complain, I'll listen. If they're encouraged to complain, forget it.