https://www.pcgamer.com/valve-rolls-back-crackdown-against-sexual-content-on-steam/

Valve's crackdown on sexual content in games on Steam has been averted, at least temporarily. In fact, it may not have been intended in the first place. The day after the surprise announcement came to light, Valve apologized for the confusion and told HunieDev and others to disregard the email about their games violating Steam's guidelines on pornographic content.

Mutiny!! developer LupieSoft reported the same thing.