Google is now requiring some businesses to add a physical address and not be a service area business in Google My Business. Google told Stefan Somborac that this is a new feature is an automated, anti-spam protection designed to reduce category misuse across millions of business profiles.
There have been complaints about this on Google My Business Help forums, one was specifically a Pilates Studio. The person wrote:
I am trying to understand why GMB has changed multiple listings for my clients from Pilates Studio to Body Shaping Classes as a category. It now requires an address to be listed for Pilates Studio. During Covid I have had a lot of clients move their studios to their home and don't want the address to be listed. Why do you have to have an address to be consider Pilates? You can be Yoga instructor and not need an address but anything Pilates you do. This makes no sense.
Here is a screenshot:
So it seems Google is saying some businesses should be at a physical address, even during COVID and is using that as a way to reduce spam?
Joy Hawkins also covered this over here with this example:
Forum discussion at Google My Business Help.