Search Loyalty Rewards API does not return anything, it returns an empty dict {}.
I have a production square account with Loyalty Program enabled.
I have created a loyalty account for a customer, and have multiple events where the customer has redeemed rewards.
However, I only get an empty response (not even with a rewards key) with status code 200.
The results are same when I set status field to other values (ISSUED, DELETED)
result = client.loyalty.search_loyalty_rewards( body = { "query": { "loyalty_account_id": "<redacted>", "status": "REDEEMED" }, "limit": 20 } )
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Based on the information you’ve provided, the following documentation will help answer your question:
Additional Documentation
Search for Loyalty Events
Retrieve Loyalty Program
Loyalty API
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What’s your application ID and is the account with the Loyalty program the same account that has the application ID? 
What’s your application ID
Application ID is sq0idp-lGWxZGmuu6PoIhuFUgLK9g
is the account with the Loyalty program the same account that has the application ID?
Yes, I am sure because other loyalty API endpoint ( Search loyalty events) return a valid response with event data, using the same loyalty account id. 