TL;DR
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Google is making it simpler to move sensitive files into Private Space, the built-in feature on Pixel devices for hiding apps and data.
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While the tool has always made it straightforward to add apps to the profile, adding files has been less intuitive.
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An upcoming update adds a new “Add files” option that lets you directly copy or move files from your main profile into the Private Space.
It’s better because you currently have no way to move a file from your normal space to your private space, and this change means you’ll be able to if you want/need to.
You could already do this for years through the “Files” app, just select the file/files and under the 3 dots “send to safe folder”. And it gets encrypted with a key on your device and if it corrupts or you try to open them on a new phone they wipe and are gone forever.
Google Safe Folder