Sounds like both articles are right: There was a private government order to preload that app to smartphone makers. And it is not mandatory for citizens to use the app.

No sensationalizing apart from you it seems

not really. you may read the official notification here https://www.pib.gov.in/PressReleasePage.aspx?PRID=2197140&re...

"Manufacturers must ensure the App is easily accessible during device setup, with no disabling or restriction of its features"