Its a good reason to never link a gmail address as a recovery address for gsuite - always use another free mail provider.
Also, what if the recovery address is another g suite account in a separate domain?
I personally never link or login with my personnal accounts on work devices, nor do I use work accounts on personal devices.
T&C violations disable an account and any linked recovery addresses (and accounts with the same recovery phone number).
If an account is disabled, all resources associated are disabled and deleted 30 days later.
A GSuite domain is considered a resource 'owned' by the first admin, so if that account is disabled, so are all in the domain. If it is deleted, so is the domain.