It's because of a software incompatibility issue which could cause the automatic emergency braking system to function improperly. Every single S60, V60, S90, V90, XC40, XC60, and XC90 sold in the U.S. is potentially affected, all 121,605 vehicles on the road today.
According to the automaker, the software currently in the vehicles is incompatible with the new hardware used in the model year update. This means the system “may not detect obstacles and engage as intended”.
https://www.powernationtv.com/post/volvo-recalling-every-single-2019-and-2020-vehicle-currently-on-the-road
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