Looking through Steam tracker it does seem to be incest and fetish porn games removed:

steam-tracker.com (you can sort the table by date).

Or am I missing something? I am genuinely curious.

I am no supporter of Collective Shout, but there are many examples of US tech companies ignoring local laws due to a toxic mix of corruption and arrogance. Steam initially not giving refunds is one relevant example.

I don’t understand OP’s post. If you want sexy/porn games on Steam (I even have 1 or 2) best option is to comply with local laws and get rid of incest, rape and extreme fetish content.

The devs can setup a patreon (without explicit references to incest) and email new builds to subscribers. It’s not unreasonable to expect a few hoops considering the nature of the content. I would even go as far as saying that it’s in their benefit to keep a low profile (i.e. not be listed on Steam).