The same thing can happen with Google Ads Accounts. I've seen a several ad agencies get totally destroyed when a client does something that violates the TOS and then you get the 'guilt by association' ban. Then this propagated out to all of their other client accounts because, well, guilt by association.
Rather than Google taking the time and effort to identify the single issue, it's FAR easier for them to just ban anything that touched those accounts. It is hands down my single biggest worry when working with Google. And why I immediately revoke access for anyone (including me) that does not need direct, active, access to any account. There is simply no way to talk to a real human and say, look, I've been working with you since you launched and this one account way over here that's 'new' did something you don't like and now I'm banned for life?