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:

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.