Peroxide disintegrates into water and oxygen once it is dry. Completely harmless. Nothing in that article contradicts this point. In fact it states the vapor is sometimes released into the outside air once it has done its job. It does kill viruses and bacteria, but only in its active form - before it breaks up into H2O and a molecule of oxygen.
meh...no amount of logic can overcome irrational thinking.
Anyway, products like KGD and Muji take shortcuts like skipping the mechanical de-linting process that removes the seeds from the fluff along with other physical contaminants and one or more washing processes. What the other contaminants might remain or what hazards they introduce is a complete unknown so I won't speculate. The seeds on the other hand, have a known smoke point of 420F and most definitely introduce completely unnecessary compounds to vapor.
Just use the word organic, cut a few corners on manufacturing, say no bleach, jack the prices a little and separate fools from their money. Those Japanese marketers are brilliant. Not only are they saving big dollars by skipping manufacturing processes and producing an inferior product, they're charging a premium and have their customers happy about it and it just doesn't matter because...
....organic, no bleach, premium prices.