SMAppService: When do app services get put into the "requiresApproval" state?

I work on an app which adds a login item to the user's system.

I recently got a report from a user that functionality of the app that talks to the login item wasn't working; upon further investigation, it became apparent that the item was in the requiresApproval state.

I plan to update the app to handle this state better, but this situation left me wondering: under what conditions do login items get put into this state immediately upon registration?

The documentation mentions "the user needs to take action in System Settings before the service is eligible to run", but doesn't specify when/why this would be the case - I could guess that it's related to macOS accounts with limited privileges or restrictive MDM profiles, but would love to know for certain.

Thanks!