The issue people have with making the distinction is that Google is trying to spin the narrative and make side loading seem like a dangerous and bad thing to the average user base who don't know any better.
They're taking umbrage with you agreeing that quantitative usage of a storefront makes something simply installing vs side loading a program. Because it helps Google's narrative in a way.

They mean a physical Target store, not a phone app. Target can track customers walking in and out the door and what they buy, how long they stay, etc. but they can't track anything about you if you just go to a different store, especially something like a small business which isn't hooked into the ad data sponge.