Its like that cookie wall stuff, how much dark patterns are implemented. They followed the letter of the law, not the spirit of the law.
To be honest, i can also see the point from the company side. Giving a honest answer can just anger people, to the point they sue. People are often not as rational as we all like our fellow humans to be.
Even if the ex-client lose in court, that is how much time you wasted on issue clients... Its one thing if your a big corporation with tons of lawyers but small companies are often not in the position to deal with that drama. And it can take years to resolve. Every letter, every phone call to a lawyer, it stacks up fast! Do you get your money back? Maybe, depends on the country, but your time?
I am not pro companies but its often simply better to have the attitude "you do not want me as your client, let me advocate for your competitor and go there".