Private apps in managed Play store

[MobileDude]

Can someone please confirm if this support page is still accurate when it comes to a private app being checked? 

"Aren't subject to the same checks as other apps. As a result, they can't be converted to public apps.

Are non-transferrable. You can't transfer ownership of an app to a different Play Developer account."

From -> Publish private apps from managed Play in your EMM console - Managed Google Play Help

We recently had to deal with an issue that came about from one of our private apps. 

[jeremy]

Hello,

This is still the case, you cannot transfer nor convert these apps. You can either make them available to other organisations is you need, or create a public copy of your app.

[MobileDude]

If "Aren't subject to the same checks as other apps" still true, any idea why a LOB app will get flagged as we need to provide Google a way to authenticate to test our app?  From my understanding is that when we upload apps into the private managed play store none of those checks are required.