Can confirm.
I just upgraded to 115, and tried out my own extension Obliterate Curves, which is similarly not monitored by mozilla due to how tiny it is.
If the current domain is a "Quarantined Domain.", all extensions which aren't monitored will get downright disabled.
Do note, the list was empty by default. 100% troubling but hard to say where they'll go with it. Might end up as a "tick this website as secure" box later, though I'd personally prefer control over which sites an extension is allowed to run in.