From what I could find in the discussions on Discord, they removed the college/school section. So I think the release notes just have a typo. (I have not actually tried the 1.0 version yet, so if I am mistaken, someone please correct me.)
The college/school section was mostly a side-story that contained very little H-content. It was also kind of abandoned and unfinished anyway. After you finished that section, if you tried to go back at the bus stop, it would just show a "work in progress" message. So the part about Steam not liking it may be more of a convenient excuse... Although it did seem more like a high-school than a university, which could have certain implications about the age of the characters.
The dialogue with the principal and students did give some interesting back-story nuggets for such an early part of the game. I do hope they find a way to work that back in... Regardless, those same story details are all covered in more detail during the end-game reveals.