I think they are trying to discourage the usage of "something style" naming, as consumers associate the "something" with the knock off. I saw it a lot in recent years in the UK, even knowledgeable people end up buying "parmesan style" cheese and refer to it as parmesan, when the taste is not the same.
To protect the name in general, they might be going after every instance of the "style" usage, even if in this case it's clear there is no intention to trick, and probably no commercial incentive.
What's the current status of the project? Is is a full functional replacement? Is it transparent to apps?
The way it works is that it pretends to be Google Play Services, so it isn't transparent to the apps. Not sure if the apps could figure it out it isn't running on the real deal.