Grandparent gave a ton of reasons, though, why this situation is particularly implausible. Why exactly do you disagree?
Again, B2B services like this are bound by actual, legal, signed contracts and real, monentary consideration, not EULAs and "free with ads" business models. Service providers don't have the freedom to unilaterally "ban" you, and that's literally one of the things you pay for.
It didn't happen, at least not as detailed in the post.
None of grandparent's reasons are smoking guns, they're just "things that would fit the conspiracy if it was a conspiracy". The probability that it's fake given those reasons isn't high enough (like by Bayes' Rule) to deem the whole story "definitely implausible".
> "I do not know why Google has a scorched-earth policy when it comes to this kind of stuff, but I fucked up and our boss is looking to migrate away from Google even though we just recently signed on not too long ago."
That seems like something you would definitely overhear your boss talking about if you also heard that they were trying furiously to contact Google.
The best reason it's maybe a conspiracy is that Google would be hesitant to "ban a whole company", but who knows, maybe if the perceived ToS violation appears severe enough (they didn't know OP's persistent piracy was a joke) Google has zero tolerance.