Masimo suggests a deal was made
There was a portion of the lawsuit that pointed out Apple's significant investment in the United States. While no direct accusations were made, it called out the timeline of being denied appeals in March, announcing new investments in the United States, then being allowed to reactivate a banned feature.
When Masimo requested why a meeting with Apple was taken without Masimo present, it was told that such a meeting can occur in "exceptional circumstances." However, the CBP did not clarify what those circumstances were.
It is unclear where the case will go or how it will affect Apple. It seems that the ITC will likely have to weigh in on Apple's new system that offloads processing to the iPhone before any decision is made.
In the meantime, Apple can likely ship the Apple Watch Series 11 and Apple Watch Ultra 3 with the blood oxygen feature enabled. Even if a new ban goes into place, the devices already purchased during this hiccup in the ban enforcement may not be affected.