Why Does it Matter?
However, these are just some of the features that are disabled with the made for kids audience setting. You can see the full list here on Google's support page. Playlists are probably the biggest drawback, but there is nothing stopping you adding your videos to a Wakelet collection or to a Google Slides presentation as an alternative.
How Do I Know if a Video is "Made for Kids"?
Although this can be confusing for some people, ultimately the responsibility as to what choice you make does like with you as the account holder. YouTube says, "As a creator, you know your videos and your audience best, and it is your legal responsibility to comply with COPPA and/or other applicable laws and designate your content accurately. If you fail to categorize your content correctly, there may be consequences on YouTube. Additionally, there may be legal consequences under the Children’s Online Privacy Protection Act (COPPA) or other applicable local laws." (Source)
What Does It Mean for Me?
For instance, a school YouTube channel may have some classroom videos that fall into the "made for kids" category, and some others that are more directed at parents, so they would be labelled as "not made for kids". It would just depend on the content. All you do is be mindful when uploading your videos and use your best judgement to make sure you comply with the new changes.
Where Can I Learn More?
Digital Learning Consultant
Grant Wood AEA