This is a great response. The shady operators can ruin simple services like these :( I’m now curious how you’d ever practically deal with this. How does iCloud deal with encrypted illegal content? Surely they can’t penalize Apple in these situations?
Apple's iCloud attempted to do CSAM scanning, but ultimately they backed off due to large public backlash. In the United States, there are lawmakers trying to require it, but there is still a lot of advocacy from privacy right activists, such as the EFF.