I think there’s a lot of handball posts above from people applying the law ftom about 10 years ago, it has moved on, simply hitting the hand isn’t enough for handball. That’s a fact.
The guidance by refs for years has been don’t make you body bigger than it’s natural shape and defenders were applauded for putting their arms by their sides. Unless a player deliberately moves his hand towards the ball it’s not a pen per the laws. The player was clearly trying to block the ball with his body (that’s his job), his arm tucked as instructed.
The ticking of the arm, not moving hand towards the ball deliberately and the late deflection are all reasons it’s not a penalty.
Astonishing decision.
The only reason I can think of that it was given is referee error on the pitch and VAR yet again not wanting to undermine him when they saw the footage.