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Not for doing it, for releasing it publicly, presumably without permission. (If he did have permission, he probably has a pretty good case to bring.)
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20% time project != able to just launch it YOLO style

I suspect the core issue here is that he launched it with Google logos without following any sort of process

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Yeah, endorsement matters. It can represent the whole. You have to be careful with it.
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That would be dumb but I don’t think it should result in firing still
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Maybe it should not, but when I worked there, I certainly knew something like this probably would. At least, if it blew up and drew a lot of eyeballs.
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2 months later, I think we can assume some kind of process behind that didnt go well for our friend here.
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It looks like he wants his former manager to be fired too. This only gives bad signals to hiring teams.
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His manager would the first line manager, and really not a decision maker at G. it possible that his manager would put him under a bus after getting called out by legal. Dunno.

But regardless once escalated by legal there have been a process to mitigate this, so either the director fired the OP or someone higher. The direct manger would be not really in the decision making here. There is a clear path to release open source at G, and it seems it wasnt followed. The OP claimed that its confusing, but it isn't - usual the launch tool to get the approval and you covered your bases. If the OP didnt have all launch approvals after 7 years at G, wow thats on him. If the OP actually had all the launch approvals then he has an actually big case against G.

Launch approvals are for all product - internal and external, it usually requires L8+ (Director) levels approvals.

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Yeah there is always more to these stories
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I'd guess he was fired for refusing to comply after legal talked with him
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