It’s not described much further, but: Terms of Service and Privacy Policy update
It appears to be about the character’s appearance within the upload, i.e. judged in a vacuum.
As someone who does host a lot of things, including cub porn, but not certain other content: there’s a big distinction legality-wise between linking and hosting/serving. It’s also normal to have things users can link to, but not post on a site itself. Sometimes the first relates to the second, but not always; it may just be that users will not expect such content on your site but you want to leave a way open for those who do want to see it to access it.