This is the thing that isn’t allowed with regards to channel points.
Channel Points being converted to another “currency” appears ok.
But the problem arises from your other “currency” being exchanged for real life items of value.
So you can’t go CP → Your Currency → Real Life item of Value.
As that then inferes CP’s have a monetary value, which they do not.
If you take out the CP"s part of this, then perhaps may pass review.
Please note I am not a lawyer, and this is not legal advice.
Both approaches you may have issues with.
For Example: An extension that uses only a custom “currency” was rejected for me, where that custom “currency” was used to obtain tickets for a raffle for “real life items” (like a streamdeck for example) as the “currency” was earned from watching a stream, which added confused value to this action.