Apple requires you to specify if your apps are using any form of encryption. If you do not use encryption, you have to confirm that in your app settings on iTunes Connect – this is not new, Apple started asking for that long time ago. Important to notice is though that since a while Apple requires your app to have a special entry in it’s info.plist file – even if do not use any encryption. Without that your app will fail to verify for Testflight and Appstore deliveries.
It’s easy to add that entry in Delphi. Go to Project – Options – Version information. The list/grid is actually editable, just go to the last row and press cursor down. Then add “ITSAppUsesNonExemptEncryption – false” as shown in the screenshot