Earlier quoted context omitted.
I think there are exceptions about "exigent circumstances" and COVID was considered one. My EU flight was not refunded as well despite the EU having strong protections. The airlines, at the time, were given a life-line. I think these once in-a-decade or more events can be swallowed. But wouldn't be happy with a regular occurrence.
GP said impossible itinerary though, not that it was unexpectedly canceled due to the pandemic.
If the country entry requirements changed, that’s not the airline that’s liable - just like if the country cancelled your visa. Talk to your insurance company.