The Play Store used to be the wild west of app distribution—you could download apps that would root your phone back in the day. Now, Google disallows various apps that are considered inappropriate or dangerous, and you can add another class of apps to the list today. Google has updated its terms to ban fake ID apps.
There are hordes of apps in the Play Store that promise to help you make a fake ID. Most of them are laughably poor quality, but that doesn't mean they're in the clear. Here's the new wording from Google's developer policy center.
We don't allow apps that help users to mislead others, including, but not limited to, apps that generate or facilitate the generation of ID cards, social security numbers, passports, diplomas, credit cards and driver's licenses.
Any claim that an app is a "prank", "for entertainment purposes" (or other synonym) does not exempt an app from application of our policies.
So, Google has foreseen the "It's just a prank, bro!" defense. That won't fly. Apps that promise to help you make a fake ID will not be permitted in the Play Store, but there's nothing stopping developers from hosting those apps someplace else. Presumably, Google will begin culling the multitude of fake ID apps in the Play Store soon. They all look pretty shady and low-effort, so I don't think anyone is going to miss this particular category of apps.