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United Kingdom
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It's a good explanation and would be logical if the council were acting in good faith, however the primary driver here is to reduce the number of people who are able to patronise these pubs and thus put them out of business.
A table and 4 chairs takes about the same space as a dozen people standing, and most of these pubs are on comparatively thin margins. Reduce the turnover by that much and they're out of business. Which is what this residents group wants.
They're pushing a lot of other restrictions not just the no standing, closing pubs at 10pm on weekends is clearly intended to make them less attractive to potential patrons for example