The issue is is specific to the subscription version (so previous years/versions don't count), and yes it is the current state of affairs. Up until April 2021, I also was able to switch PD365 back and forth between my desktop and notebook without being prompted, but since then it happens every time.
In my case, I'm pretty sure that I went over 2 installations due to performing a system restore on my desktop. The original installation was overwritten on my local drive but wasn't removed from CL's servers, and then I acquired a new license after PD determined that my system's digital fingerprint had changed.
I wrote to CL tech support at the time to request that they purge all of my licensed installs so I could go back to only the 2 active ones, but they said would not as this is the intended behavior.
Bottom line, enjoy the free switching while it lasts as it might disappear at any time