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ACR is a documented feature so they can't deny that it exists. https://lgads.tv/technology/ https://www.consumerreports.org/electronics/privacy/how-to-t... (note that this is from a year ago)
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Not defending LG's stance, but hasn't LG always said they do this as part of ACR (automatic content recognition) for the purposes of targeted advertising?

LG says it's opt in, and I think the devil is really in the details about what the consent screen says, but the only way I think it would be a "crazy accusation" is if LG was doing this without consent.

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They're not doing it with consent. LG still covertly takes screenshots of everything you display on your screen even when you set every available option that's supposed to stop this:

https://www.reddit.com/r/LGOLED/s/x8iBNCPya5

And there are cases of LG re-enabling these ACR options without your consent when they push firmware updates, and even randomly without updating, at which point the TV will send all the past and present ACR data it's harvested from you to LG, without your consent:

https://www.reddit.com/r/webos/s/Vn0jFhKsXO

https://www.reddit.com/r/LGOLED/s/wRFMmQHXHG

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