Could be that Amazon took notice after AFTVnews and the YouTubers started posting about LM 1.1.8. AFTVnews suggested LM could be blacklisted, Amazon must have liked that idea.
Amazon may have a way of uninstalling apps remotely similar how they can remotely protect/unprotect any package.
When you reinstall LM 1.1.8 and then reboot your FireStick, does LM disappear again?
If Amazon has blacklisted LM, it may need to be installed with a random package name to avoid their detection.
The YouTube and site coverage likely sped things up, but there was no doubt LM would get blacklisted. The last app Amazon blacklisted did exactly the same thing as LM, which is to take over the Home button by reading logs. It sucks but there is nothing that Amazon defends more than the Home button, so anything that remaps it will eventually get blocked or blacklisted or both.
When blacklisted, the app isn't uninstalled. It's just not allowed to launch. Back in the day this was done using a package name list on the device in an sqlite DB file. Then Amazon added a NIMH system app that seemed to handle the gatekeeping. Now it seems to just be handled by Vizzini, the appstore app, but I'm not positive about that as I haven't dug into it in a long time.
My guess is that changing the package name will make LM work again but I'm sure Amazon is also going to modify the log output so that LM or any app can't detect the Home button being pressed. That change just takes longer to push out so the package blacklist is used as a temporary block while they work on the real block.