Apple does not want beta products in the app store, which makes sense. But I've not seen an outright ban on testing. Testing allows us to make the app better! In any case, we've not been rejected.
Can you elaborate? Your app got rejected?
We were just encouraged to take a different approach. Not rejected. That's why I'm curious to see if others have had a different experience if they've been up front about what they're doing.
It would be much more developer friendly to encourage this and would ultimately lead to better experiences for users.