The custom status activity is omitted from Presence Update events dispatched to a guild based on the presence author's profile privacy setting.
If a user's Profile Privacy Setting is set to Friends Only, or to Friends & Small Servers Only in a guild with more than 200 members, their custom status (an activity object with type 4) is omitted from the activities field of Presence Update events dispatched to that guild.
This applies to apps and bots subscribed to the guild's presence. Other activity types (Playing, Streaming, Listening, Watching, Competing) are not affected by this setting but may be controlled by Activity Sharing settings.