Just like many people are confused about what of the upcoming changes are DMA-related and which ones are separate from that and apply worldwide, Phil obviously conflated those two.
He was asked about a cloud gaming app and his answer was obviously about monetizing an alternative Xbox marketplace in the EU. Too bad the interviewer did not point it out and ask for clarification.
Obviously, there are no issues with monetizing a cloud gaming app. It would work the way the current web app works (which in fact 17.4 will break in the EU) and if they don’t want to pay Apple’s commission, they can just avoid it altogether and require signing up on Microsoft’s website, Netflix-style. This is explicitly allowed by Apple.