> Demos, betas, and trial versions of your app don’t belong on the App Store – use TestFlight instead.

https://developer.apple.com/app-store/review/guidelines/#bet...

This doesn't apply to a demo with a full product behind it. You can release your "demo" combined as one app, with a small subset of content available for free and the rest locked behind a macrotransaction. Which is what OP already does, except they also have microtransactions targeting children on the side. This essentially only prohibits you from releasing a demo if the demo is for an unfinished product.