It does. I live in Germany, but am American. I couldn't download the EU Digital Vaccine Certificate app until I switched my Apple account from US to Germany...
Have you considered going to the press with this story? It sounds like the kind of thing that could ultimately lead to a very critical piece in some major news media, which might push the tide back somewhat.
Similar for me. My country of origin is the US, and my Apple account is connected to a US credit card. But I live in Israel and was vaccinated here. Since I am linked to the US App Store, I can't download the Israeli Vaccine Certification App ("Green Passport"). Nor can I easily switch my Apple account to Israel as I have several subscriptions that would need to be canceled.