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I wonder if you can make a creative small claims court claim against them.

Denying access to some repo where you spent x hours on which can be resolved by them paying you y dollars * x hours. And then hoping a lawyer takes pitty on you and restores the account?

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That's a good idea!

I've been thinking about how they could solve this, since they accept payments; wouldn't it be possible to request a payment with a specific reference code to verify the identity? Paired with any other required identification process, documentation, etc.

IIUC, the issue is not that they can't verify OP. It's that there is a policy decision not to restore access.

So you have to work around the policy issue.

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