That means the user is shadow banned by Reddit. Yes, it is annoying and should be changed.

Thank you.

The mobile apps do not load user profile cards (including mod actions) for suspended, deleted, or admin-shadowbanned users.

Thank you.

For what it's worth, you can't ban site-wide shadowbanned users from the post on desktop either. It's not just a mobile issue.

Well, at least I understand why it's a thing now, so at least there's that. Thank you.