I just don't understand the wording.

It's banning characters that look like minors but are over 18 by what I can tell, by closing a loophole by no longer allowing an uploader to assert that the character is an adult despite looking like a child. If it looks underage, it's considered underage under the new ruling. This applies to fetish and sexual situations.

May I have an example? I'll provide links in a note.

If it is drawn to look like a cub, then they see it as a cub even if it is an adult. If people want to have ocs in child-like situations/ clothing they now have to draw/have their ocs drawn more adult looking and not like a child.

Those should be fine by my reckoning. I don't think that diaper stuff is against the new AUP, it's just the perceived age of the character. As  ledieuiciss has said, it's about appearance, the "actual" age of the characters are irrelavant.

A good example would be something like Kanna from Miss Kobayashi's Dragon Maid. Ilulu from the same anime is also underage, appearing as a 16 year old, per the rules of FA but both are older than they look.

Small =/= underage. It's something that people seem to not be able to understand.

https://cohost.org/

here.