From one side it's a KYC casino which has the right to enforce identity verification process, and from another side it's a VPN friendly casino. How could you explain if you enforce KYC to a user then find out that he is from a restricted country using a VPN?
There is possibly automatically tool that triggers action against accounts with VPN use and IP addresses from restricted nations, but if that user is actually not from restricted nation, it's possible to prove it later.
It's clearly troublesome for the user even it is possible to appeal successfully, so a better practice on user side is never turn on VPN with nation in the restricted list of Luckyvibe. Let's be more careful with practice on any casino if you use VPN, you must know that there are restricted nations. Let's say it more simple, if your nation is not in the restricted list, you can use VPN with geolocation is your nation, and don't have to worry about this issue. If you choose another nation, let's be sure that it is not a restricted nation.
I think you complicated things or you are missing something. If someone is not in one of the restricted countries, why should he think to use a VPN at first place? OP seems really not to be conscious about what he is saying which rised suspicions about him not from the casino team to explain the restriction.
Overall, it's never advisable to use what's called VPN friendly casinos because this wouldn't fit with the KYC/AML policies, and if it's a No KYC casino there would be no reason to use a VPN.