This is based on heresay / speculation, but my understanding is that SSO won't be allowed in the app unless the user has opted into ad tracking. Facebook just recently announed a new SDK with limited functionality if the user has opted out, so my guess is that Facebook is preparing to not collect any data about the user if they have opted out of ad tracking.
Edit:
It looks like SSO is specifically called out in the AppTrackingTransparency documentation: