That's not the worst part at all! Anyone could file a complaint about a mistaken algorithm; the companies are run by people, and they'll have to address their customers' concerns. The worst part is that humans use these algorithms to justify and enforce their own shitty decisions; to say it is "out of their hands" due to some inane, manufactured inconvenience.

>There's irreparable reputational damage associated with an algorithm libelously labeling something "extremist content" that isn't.

The damage is definitely repairable. You admit the algorithm is flawed and you tolerate exceptions to it.