Neither does their current CSAM proposal - read and inform yourself. They are passing it to other entities that may pass it to the police.But what that doesn't include is "send that content and your name to the police."
Having said that, CSAM tends to be subject to mandatory reporting laws that would override the terms of service anyway. But if this were to expand to other material besides CSAM, the question of whether Apple has the right to report you to authorities starts to get more complicated.
They have also directly talked about the slippery slope topic and hit it head on.