As far as I can tell, this story hasn't changed and it's being made to seem much more than it is.
When it first came out, the issue was that India didn't want to do a hard quarantine, that is, locked inside your room except playing and training. that is absolutely fair enough.
fairly quickly after this, it seems CA and QLD agreed to allow players into certain areas of the hotel, so no more hard quarantine. Now it seems India just wants that
in writing*, which again, fair enough, surprised it wasn't already. I wouldn't trust the QLD government to not revoke that rule either. I think this is a whole lot of hot air. India's requests are entirely reasonable, but for some reason it's been dripped out bit by bit by BCCI sources. like a lot of Covid stuff in aus recently, this just feels like a big overreaction (but poorly handled by the BCCI)
*"Veteran cricket scribe Robert Craddock said Cricket Australia had told the Indian team they would be able to mingle at the hotel, but the visitors want it in writing because of concern police will be stationed outside their rooms like they were during their initial quarantine."