I browse Reddit only for one sub, a country-specific one that is reasonably niche. Right when the API migration happened, there seemed to be a very visible migration of Facebook/Instagram people migrating over to Reddit. Posts asking where to find Instagram/Facebook functionality came in daily, and the overall quality of both comments and posts degraded a lot, suddenly posts had a ton of comments with one word and a ton of emojis.
The case is basically that having a non-tracking paid tier makes no difference, the free tier if it exists can’t include mandatory tracking.
So they can offer a paid tier with no tracking, but they must also offer no tracking on the free tier.