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I must be missing something. How would Google be at all liable for restoring funds stolen by software that they themselves didn't furnish, on a device that's out of their control?
As if that's not already the case
A judge may not see it that way. They may perceive it as Google failing to provide adequate protections to their users.
If user installed the app created by Google and did not share any login credentials. It's easy to claim Google is liable.
The equivalent would be a bank leaving the back door to their vault open. An intruder going in and removing your funds. Despite following all the banks instructions, the bank has not replaced the funds.
The banks is responsible for people gaining unauthorised access to your account. Especially when you don't share your login credentials with anyone (even unknowingly). If they can't protect against root access attacks then, they shouldn't permit use of their app on those devices.
Apps have convenience features, especially related to easy sign in. Their website logins don't have these features. They require the user to enter passwords, challenge codes, card reader etc. If someone gets access to a password manager, the user is at fault. The bank likely stated you shouldn't write down or record your password.