I agree with the approach of accommodating sensory sensitivities.
One of mine had trouble in school unless she had a certain headband that felt comfortable, and more than once I had to drive to school with a change of shirt. She later had a couple of clinical diagnoses that explained the sensory issues.
I would avoid anything punitive of course, and withholding attention is something I cannot comment on. I did not take that route myself and it worked out.
I think the more important issue is what is actually going on in terms of the sensitivity to light and sound, neurologically or neuropsychogically or whatever. Not sure of the age and when those explorations should be done. Wish I had done something earlier!