Here's an example of a game that requires a download:
https://ebgames.com.au/nintendo-switch-240282-NBA-2K19-Nintendo-Switch
On the box itself, it says:
"To use this software, a minimum download of 32 GB via a wireless internet connection is required. You may also be required to create or link a Nintendo Account."
A banned console cannot fulfill the "minimum download of..." requirement, because it will be banned from downloading anything from Nintendo's servers. Also, the "You may also be required to create or link a Nintendo Account" requirement would be an issue, as you couldn't link the game to a Nintendo account if the console you're using is banned from using Nintendo's services.
So, that's the two things to look out for.