That's a poor understanding of the situation. Nothing in the licensing changed. The SDK has always been the proprietary business to business secrets management product. The client integrates with and can use that SDK to provide the paid service to businesses. The client and the server side management of password has always been and still is FOSS.

This was apparently an accidental change in the build code (not the client code, just the building scripts) that required the inclusion of the SDK to build the client when actually it has never and doesn't really need any of that code. It prevented building the client without accepting the SDK license. Which it shouldn't.

This was fixed and some things will be put in place so it doesn't happen again. Nothing in the licensing scheme changed, at all. This is not a catastrophic enshittification event. A Dev was just being lazy and forgot to check the dependencies on the build chain before their commit.