I know this was already address BUT, I'm here to give a better idea and more information.
Other social networks all have a block user list for you to see who you blocked and allow you to unblock them. So personally I don't think it's a privacy issue.
I understand yous wrote that you don't have the list because you don't want people stalking others BUT how about you have the blocked user list.
And either the list only has the username and nothing else OR you allow us to click the username, and the only thing that shows up is the username, age and the first profile pic used.
So don't include their Vrchat/discord accounts, and don't show any of their bio or photos after the first profile picture.
And if you choose to unblock them they go back into the "draw" to have a chance to homie or like them again. So once unblocked you aren't able to just like them you have to wait till they show up again.