Yep. It marks residential IPs for no good reason and for god knows how long. Cloudflare is way up on the list of companies that have broken the internet. But, hey, free stuff, right?!
What would you recommend?
I'd personally recommend using something that doesn't block real people like there's no tomorrow.
Maybe hcaptcha, I've never run into captcha hell with it, unlike Cloudflare and recaptcha. If those two decide you're a bot, you're done, better go change that IP and reset cookies.