Essentially the apps have same package name but different signatures and the app store that installed it should be the only one to recognize and update it.
But Google is likely trying this dark pattern to sway people away from F-Droid or alt stores by making users uninstall these apps and install it from the Google Play Store.
It’s been going on for a while and is annoying af.
Since I found out about F-Droid and Aurora Store, I’m actively dodging the Play Store. No one will ever make me use it. Ads, promos, junk everywhere! And their shitty way of updating.