Yes, this is a known conflict. When you enable the Block Proxy/VPN users setting, Google's IP ranges can sometimes overlap with known proxy networks, causing Google to be flagged and blocked.
The fix: Whitelist Google before enabling proxy/VPN blocking.
Go to Settings → Allowed Bots
Add Google LLC to your allowed list
Save the setting
Then enable proxy/VPN blocking
This ensures Google can continue crawling and indexing your store while proxy and VPN traffic remains blocked. If Google still shows as blocked after whitelisting, contact us with your store URL.