I think you'll find a lot of schools are doing the same thing. They've trained an army of students to meet the GFPT standards and rule structure, and now CASA have upended the rug and schools are still picking up the pieces.
Apart from insurance mentioned, there's Operations Manuals to amend, training syllabi to update and include in Ops Manuals, CASA approval for the previously mentioned, and retraining of students who have been groomed for the conditions of a GFPT.
A school cannot just say "you've only flown around the training area previously, but new rules is new rules, go nuts within 25nm". Schools are accountable for the supervision and safety of students, and training appropriate to the type of licence sought, so a blanket "not yet" in the initial stages is not that unreasonable.
Schools will catch up and RPL privileges will be recognised and permitted. Just consider yourself one of the unlucky ones who got caught up in the changeover process.