Blizzard refusing a refund because of historic account action

I was temporarily suspended from Overwatch 1 until the 3rd of October 2022.

On the 13th October 2022 (10 days after the suspension was lifted) I bought Diablo 2: Resurrected.
One the same day, I requested a refund for the product.
Because the automated refund system was throwing an error, I had to raise a ticket to support.

After waiting two weeks for a response, I have been told by Blizzard that my refund will not be granted because;
“After having verified your account, I have noticed that you had a recent account action penalty and therefore we will won’t be able to proceed with the refund. We hope you understand.”

The suspension was for a game that no longer exists, and had been served in full more than 2 weeks previously - But for some reason it’s still being held against me, preventing a refund that isn’t even relevant to Overwatch at all. This doesn’t make sense to me.

Has anyone else encountered this?

Full Blizzard response here:

Thank you for reaching out to the Blizzard Entertainment Support team, this is Game Master Naesearred here to handle your request.

I understand that you purchased Diablo 2: Ressurected and want it to be refunded since you are having technical issues . No worries, I can provide more insight on this matter.

After having verified your account, I have noticed that you had a recent account action penalty and therefore we will won’t be able to proceed with the refund. We hope you understand.

I know this is not the answer you were hoping to receive, however this is the only that Blizzard Customer Support can provide to cases as the one you so kindly described to us.

Should you have any need for anything else, feel free to let us know, we will be here to support you.

Have a wonderful week and take care.
Game Master Naesearred ʕ •ᴥ• ʔづ
Blizzard Entertainment