And the reality is that nothing has changed.
Despite recent controversy and increased discussion, the ToS regarding the use of any 3rd party tools has not changed: all 3rd party add-ons violate the ToS, and you assume all risk when using them. Full Stop. Zero grey area.
SE has stated on multiple occasions that they will not condone the use of outside tools that modify the game in some way. In the same breath, they have also stated that they DO NOT have any way of detecting the use of these tools, nor do they plan on adding any software to the game client that will allow them to monitor your computer to detect these programs being used.
An informal policy of "don't ask, don't show, don't tell" has been in effect for years, and it only really becomes a discussion again during high-profile events, such as the recent Ultimate race and the suspensions that occurred due to the confirmed use of these tools. SE has a standing punishment tier system based on the severity of the violation. That is the only leeway given when someone gets a warning for using something like Gshade vs someone given a 20 day ban for using ACT, Cactbot, or a combination of other tools.
A lot of the controversy has come from some players saying that SE suddenly decided to update their ToS regarding 3rd party tools in regards to the recent actions taken against Ultimate racers. The simple fact of the matter is that they have not updated anything. It is the exact same ToS it has been since it has been implemented.
The exact same thing happened when SE reiterated their policies regarding harassment. So many players started crying foul, saying that SE was catering too much to the casuals not wanting to get their feelings hurt. Fear that people would weaponize the ToS to get people banned were rampant. The truth? Zero change was made to the actual policy. All they did was provide some specific examples as a general guideline to curb harassment.
Now there is merit to the discussion that the game would be greatly improved by some of the UI and QoL tools that are in use. Yoshida even stated that they would look further in to how these tools could be implemented into the game. I believe this is a step in the right direction. I also do not believe in witch hunts, and the petty reporting of these tools is childish if for no other reason than to see someone get a ban.
A the end of the day, stay safe, do you, and always be aware of the inherent risk in running 3rd party add-ons.