From other comments where telemetry goes to, and possibly the level of remote control in the cars.

It appears to be a general ban on "connected vehicles" controlled from certain countries even if built in the US[1], so I would guess that Volvo does not meet the criteria for that.

1. https://www.topgear.com/car-news/usa/polestar-has-been-banne...

My Polestar has the word "Volvo" on several parts. They share a software stack and get the same updates.