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I’m not very tech savvy when it comes to this, but would it have anything to do with the anti-bot stuff that lemmy.ml has implemented in the sign-up process? You now have to answer a few questions and basically write your reason for making an account before it lets you even submit the request for review.
To use the tool you need to make your new account first manually - then you can port over your settings with the tool - so it shouldn’t be affected by this.
So no, lemmy.ml shouldn’t be blocking it, unless it’s got something enabled to disable all API logins - though I would think that would break everything (i.e. apps).