Things escalated, folks. They got a C&D:
https://torrentfreak.com/youtube-orders-invidious-privacy-software-to-shut-down-in-7-days-230609/
Start backing up the source repos now.
this post was submitted on 09 Jun 2023
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It seems to me that this article just describes the same situation as the github issue. I think they just used the term cease and desist. So no further escalation from what I can tell.