Banned for not being able to merge my Steam and Xbox accounts

First off, thank you for taking the time to report this to us. Unfortunately, we found that a recent update that we did temporarily affected accounts in a weird way, with some looking like they are banned when they are not, or indicating that the user is not able to complete the account merge.

Our dev team is aware of the issue and are working on a fix now, and we hope to have it rolled out as soon as we possibly can. We are sorry for the inconvenience, and would like to thank you for your patience while we get this sorted out.

Update: The issue has been fixed and you should be able to complete the account merge now.  Could we get you to return to the Klei Account page once more and complete the process for account merging. Again, we apologize for the inconvenience, and would like to thank you for your patience.