Google to developers: We take down your extension because we can
I had similar problems with an extension that I am developing. They threatened to take it down because it didn't have a privacy policy attached, although their developer guidelines state that you only need a privacy policy if you collect personal or sensitive user data, which I am not. It took me several resubmissions (each time I was scared I would be banned from all google products), before they finally approved my extension. The clincher was that my extension was marked as unlisted the whole time; it wasn't even open to the public.