Never had it happen but I have had accounts frozen for being too close to some coins the govt didnt like. Told them to kick rocks w their questions and eventually they unfroze it. Other good mainstream solutions include square and open node. If you want to host your own wallet, btcpayserver and Bitcart are good options or you can just any old Bitcoin wallet.

The problem isn't so much that funds are non-kycd but more than they may be within x transactions of a coin join or a blacklisted address.

Do not use Bitpay, they are the worst of the worst.