Of course the FLoC team would want browsers to throw an exception, since that wouldn't damage the perceived legitimacy of FLoC. But as a user I'd rather feed them false data if possible.
There are quite a few ways for a site to distinguish private/incognito from normal browsing, and IMO these differences should be treated as bugs. Indeed, these differences often break sites (including a vaccine registration site) that should work fine. We don't need even more ways for sites to break in private/incognito mode.