Sandboxed Google Play compatibility layer: add special case for sandboxed Play services making it so users granting the SMS permission enables reading SMS addressed to apps using the Google Play services client library (Android 16 QPR2 prevented using the SMS permission to read SMS addressed to other apps so a special case is needed for apps which use Google Play services to handle SMS-based authentication)
That's a nice improvement. So, when using the Play Store, an app requesting a verification SMS will only see the SMS that concerns it. The Google Play Store will still be able to read the entire content of SMS messages. In the absence of an alternative to the Google Play Store, it would be a bonus to have temporary permission for apps and the Play Store, but only for new text messages and calls.