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kind of an odd policy IMO. I can see the one they implemented months ago on having the correct display URL with destination URL to prevent people from using fake directories and subdomains.
I don't really why they are pushing on this so hard other than to prevent people who are advertising using sites like blogger so the person is aware they are doing to a subdirectory.
IMO, they will prevent you soon from choosing your own display URL and will automatically be populated based on your destination URL
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