Anyone else getting this weird new 'feature' where every new contact you add is automatically blocked?

The first few times I didn't even realize it until I was looking through my contact list. Since then, I've actually watched it happen a few times.

I paste the new contact's email into the contact search bar, and the search comes up empty (obviously). Without clearing the search I add the contact. I see them appear in the search results, and then switch from (offline) to (offline, blocked).

They really fubared everything with the last updates haven't they?

Oh and I'm using WLM for XP (aka WLM 14.0.8117.416)

Mine was doing that also with WLM 15 (2011) i just assumed it was an issue with possible msn plus software so just unblocked them.