that's not completely accurate. Some defenders do tuck their arms when in the penalty area. However, most refs will not call a handball just because a ball hits the arm. If the ball is driven into the arm (shot/pass from close to the defender, where they have no chance to move the arm), a foul is rarely called. Refs are instructed, during their annual training, to avoid such calls. After I saw a video of the play in question, I was in a text chain with several soccer refs, and most of them felt the call was inaccurate, and that the PK should not have been awarded.
Correct. To expand on that, Law 12, which addresses handballs, is being extensively rewritten. The new changes took place at the FIFA level on June 1 of this year (i.e., the day of the game). FWIW, most of the revisions are simply putting into the Law what has been established in ref training for the past several years.
The change that would address the specific play in question reads as follows:
"Except for the above offences, it is not usually an offence if the ball touches a player's hand/arm:
- directly form the player's own head of body (including the foot)"