Earlier quoted context omitted.
>Then, the impostors in step #3 create a different google account with the same domain, and Google says "yeah, these are definitely the same guys as before", even though Google is fully capable of discerning that that is not the case; these are different people with a different workspace account, different names, different payment information, and so on, but Google is saying that if you're holding the domain you are…
Traditionally, SAML / OIDC trust is established using public/private keypairs. Each IdP/SP pair gets a unique combination. In this case, a domain changing hands would not allow the new owner to gain access to the old owner's accounts. In the case of Google OAuth, it's possible to forego this in order to allow any Google user from any Google workspace to login to your application. See the distinction between "public a…
There are plenty of use cases where this is appropriate. If you wanted to allow users to login to Hacker News with their Google accounts you would use this option because you do not care what workspace they belong to.
> Some applications (e.g. Tailscale) take advantage of the public Google OAuth API to provide private internal corporate accounts.
This is a misuse of the public Google OAuth API. Your first link clearly states: "A public application allows access to users outside of your organization (@your-organization.com). Access can be from consumer accounts, like @gmail.com, or other organizations, like @partner-organization.com." In other words it is intended for scenarios where you want to allow access to users outside your workspace.
> Instead, Google instructs you to look at the "hd" parameter, specific to Google, to determine the Google Workspace a given user belongs to for security purposes.
According to your second link the "hd" parameter only tells you what domain the user belongs to, it does not tell you what workspace the user belongs to.
> You can avoid this issue by using a custom Google OIDC IdP configured for internal access only in your applications, rather than using a pre-configured public Google OIDC IdP
So Google offers an OAuth integration option that actually restricts access to your specific workspace. Choosing to ignore this option and instead integrating with the option designed for public access from all Google accounts, and then calling it a vulnerability when someone can login with an account from another workspace, is frankly, absurd.