Yes this seems to be increasingly common, at least on the west coast. The suboptimal part is that the buyer typically gets hit with an out-of-network ATM fee for doing this, so the consumer is paying $2-5 for processing per transaction.
And if you're truly abusing it and costing them massively with fees, they can always close your account.
It’s probably better to say “nearly all CU withdrawals” because they don’t have a perfect monopoly.