Nintendo Devices and Nintendo Accounts Will Not Be Usable If Users Are Found Bypassing, Modifying, Decrypting, Tampering, and Circumventing Functions or Protections
If users are found bypassing, modifying, decrypting, tampering, and circumventing the functions or protections of the Nintendo Account, then Nintendo now reserves the right to revoke access to the Nintendo account services or make Nintendo devices partially or fully unusable.

In the previous agreement, Nintendo did not explicitly mention direct consequences for those who violate the rules they have set. Now, with the latest changes, Nintendo seems very serious about making the Switch system unusable if anyone is caught altering their files or systems.
Without limitation, you agree that you shall not (a) publish, copy, modify, reverse engineer, rent, lease, decompile, disassemble, distribute, offer for sale, or create derivative works from any part of the Nintendo Account Services; (b) cut, modify, decrypt, defeat, damage, or spoof the functions or protections of the Nintendo Account Services, including by using any hardware or software that may cause the Nintendo Account Services to operate not in accordance with the documentation and intended purposes; (c) obtain, install, or use unauthorized copies of the Nintendo Account Services; or (d) exploit the Nintendo Account Services in any way other than using them in accordance with the applicable documentation and intended purposes, in each case, without the written consent or express authorization of Nintendo, or unless expressly permitted by applicable law. You acknowledge that if you fail to comply with the restrictions mentioned above, Nintendo may make the Nintendo Account Services and/or applicable Nintendo devices permanently unusable, either in whole or in part.
Additionally, the privacy rules have also changed. Now Nintendo may read video recordings and chats on the device, provided that permission has been granted by the user. Nintendo stated that this is all to maintain a family-friendly environment.