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I've had my IP blacklisted for running a non-exit node, just a relay. So it's definitely a thing.

Running an exit from your home IP is a very, very bad idea so he most likely has rented a server somewhere and is running the exit node there.

I'm sure they have been blocked, many times. Some online services simply fetch the tor exit node IP lists from the tor project and block them all pre-emptively.

The thing is that I rotate my tor nodes every other month, manually. No pipeline setup for this yet. So I destroy old VPS and create new ones with the same signing key and family in the node info.

I suspect you're talking about running an exit node at home, or on an IP-address that matters. That's a stupid thing to do.