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If these answers are not provided, the claim then undergoes further review, which extends the time a winner must wait in order to receive their prize.
So the prize was delayed, not denied. Misleading headlines like this really make it difficult to trust the source.
The considered ban on masks was for protesters.
The idea of not allowing anonymity for protesters has its origins in combating racial violence and the KKK. Klan members suddenly lost a lot of their motivation to assemble in public, once they had to show their faces, those that did were less likely to commit illegal acts and the ones that did break the law were more likely to face legal reprocutions.
The contemplated ban on masks for protesters in Los Angeles was considered following increased violence by masked protesters and was not motivated by covid denial.