There are several cheap MDM solutions for Apple devices that I would rather pay for than be dependent on this. (We've used SimpleMDM and love them.)
Like really Apple, that's your device "locking"? I could test activate my work Mac with my personal Apple ID while doing this, no alarm bells, nothing, effectively "It's your laptop now".
I had the same thing happen but with Microsoft. A friend and I had started a small consulting business and were using Google Workspace, but I needed a Microsoft account to interact with a client. I made one with my business email. None of us knew any better, but I couldn’t connect with our client’s Microsoft setup because it was a personal account. So I went to set up a business account. It was a whole fiasco and the only way I could really fix it was create an alias and use that for Microsoft.
So give all the employees an email alias they can use to create a new Apple ID for this purpose?
This should not be a surprise. Greenfield services have not existed long enough to resolve edge cases that inevitably arise while integrating existing operating models already in use.
Employee does not trust the company having access to everything else in their personal iCloud account - photos, mails, messages, calendar, reminders, etc.
Employee registers a new Apple ID with company email, as it would be only used for downloading one single app.