the potential customer who wants to store their code at GitLab...
... has every right to demand that their code - a.k.a. Property - not be available in certain specific countries, at customer's sole discretion. This isn't something for GitLab to decide, or debate, as GitLab does not own the code. GitLab is only a hosting company.
I take it that Ms. Candice Ciresi, and GitLab, are so awash in money that they don't need the contract. If that's the case, problem solved.
In the meanwhile, many thanks to Ms. Ciresi for the Internet melodrama about freeh-dom and feeh-lings.