Google Ads Exclude Placements Coming To Smart Shopping Campaigns?

Google seems to be testing a feature to exclude unwanted placements in Smart Shopping Campaigns within Google Ads. ADworld Experience posted this on Twitter but it is not clear if it works or if this was some sort of slip up from Google.

Daily Search Forum Recap: December 29, 2021

Google: No Difference In SEO Value Between Nofollow, UGC Or Sponsored Link Attributes