They are making you a favor. Use anything else but not them. They have a history of vulnerabilities worse than any of their competitors. It's a company run by private equity, so you can expect them to cut costs on everything including security and privacy.
It sounds like it's an issue with LastPass's payment provider, who must think they are doing them a favor by blocking transactions with email addresses at "suspicious domains".
They are making you a favor. Use anything else but not them. They have a history of vulnerabilities worse than any of their competitors. It's a company run by private equity, so you can expect them to cut costs on everything including security and privacy.