These sound like common blacklist-style defenses. As examples, mail services use RBLs to prevent spam, Cloudflare services often require captchas from Tor exit node IP addresses, many websites decline signups from throwaway email addresses like Mailinator. Credit card companies use various indicators to prevent fraud.

I'm not saying these measures are perfect or fair, but they are not related to government (though government may also use them); they are just obvious ways to prevent unwanted activity such as spam, fraud, hacking attacks, etc.

> Their AI determined that people using particular email providers need to be watched

How do you know that government has concluded 'particular providers need to be watched', and that the decision was performed by an AI?

> for using a privacy focused email address when signing up for services operated by a government entity

How do you know the cause?