>I connect to my residential ISP in the USA via VPN all the time and have never had issues with being blocked for VPN use.
Bit of a non sequitur, you would have to outline your entire usage pattern to even submit that as N=1.
GEOIP providers dont sit on your home network. They do accept data from third parties, and are themselves (likely) subscribed to other IP addressing lists. Mostly they are a data aggregator, and its garbage in > garbage out.
If someone, say netflix, but other services participate, flag you as having an inconsistent location, they may forward those details on and you can get added to one of these lists. You might see ip bans at various content providers.
But the implementation is so slapshod that you can just as likely, poison a single ip in a CGNAT pool, and have it take over a month for anyone to act on it, where some other users on your same ISP might experience the issue.
These things can also be weighted by usage, larger amounts of traffic are more interesting because it can represent a pool of more users, or more IP infringement per user.
You can also get hit from poor IP reputation, hosting a webserver with a proxy or php reverse shell, or a hundred other things.
(Also, larger ISPs might deal with a GEOIP provider selling lists of VPN users that include their IP address space, legally, rather than just going through the process of getting the list updated normally. This means the GEOIP providers can get skittish around some ISPs and might just not include them in lists)