Okay found something. It appears to be a rule that applies to "3rd class" (non-EU17) ex-pats. I found THIS INFORMATION (in German) from Kanton St. Gallen. Check out point 2.3. Briefly translated, it states that you must supply a certificate, from an approved examination centre, stating you have reached the TELC A2 proficiency.

Perhaps many Kantons have been ignoring this requirement up until now, or are enforcing/introducing it due to the (perceived) impact of the EU-Extension.

So there we go, eh....learn somethin' new every day..