Yeah, this is insane. I also bought the game twice due to that buggy sh*t and that MS/Mojang poor integration, but fortunately they reimbursed one of the purchases after I opened a ticket to the support. But yeah, that UX is so bad...
Having gotten flagged that way, there’s no way to buy it anymore; other payment methods also fail due to the flag.
Support took weeks and multiple escalations to figure it out, by which point I had migrated the family server to minetest (which has so many qol improvements that the kids were thrilled to change).