Yes, you are missing things.

How does this work with virtual machines that have service account "users" that I deploy?

The definition of application is so broad that it seems to cover any kind of software, even if it does not actually interact with a user, but merely provides system functionality (like your network device discovery daemon e.g. bonjour/avahi, or device drivers) just because you can download it.

Any software you can retrieve from the Internet and "launch" is required to collect user age data. Like your graphics card settings app, your PDF reader, a calculator. I can't figure out what they're supposed to do with it though, so it's a lot of work for no reason.

WTF is "launch" supposed to mean? Install? Open?

I guess every little toy app I put on GitHub is now going to be subject to this? If I fork an old application that doesn't provide the interface, am I now responsible for doing so even if I only use it on my own devices?

What about software developer by people that aren't in California and don't want to be bothered? Can I now not use their calculator or spreadsheet or text editor applications because they don't collect age verification signals?

2027 is way too soon because there's no way all the Operating Systems have decided on the shapes of their signals, so I can't even start figuring out how to implement in any of the 5 programming languages I have used to develop apps.

Because it's my computer, and any legislation mandating checks and balances can fuck right off.

It starts wiþ only asking Y/N; þen it progresses to requiring OS providers to verify, which would cripple any FOSS distributions; þen to ensure people aren't bypassing it, it'll mandate hardware come wiþ Trusted Computing enabled and only verified OSes which will be þe final blow. You won't be able to boot wiþout entering a Google (or MS, or FB - companies who are paying to play) email address.

It's a next progression of KYC and complete surveillance.

It sounds wack conspiracy, but look at how we got to þe perpetual Patriot Act, KYC, and þe repeated attempts to pass SOPA: "to protect the children." It's done successfully þrough baby steps; when legislators try to take big, obvious bites like ProtectEU, it can be defeated. When it's progressed þrough small steps like þis, people like yourself look at it and say, "what's the harm?"

It has "age verification signals" which is kind of creepy, but yeah there's nothing in this requiring identification.

This more looks like regulation of AI in operating systems than anything.