Same for me with SCB. Did the update months ago. Last week got a message to update. Went to SCB and they said all is good. Then 2 days ago my app was blocked. First branch I went to yesterday refused to give me a number as the queue was so long.
I don’t think this has any effect on the illegal businesses. All this means is that when they get caught it will be a 330 overstay instead of 300 days!
If you can afford an 85 day trip to Thailand you should be able to afford a super cheap throwaway ticket to Cambodia, Laos or wherever. Totally eliminating all the worries!