The rules mentioned evidently tread the "gray area" and seem designed to exploit a loophole for what could be deemed as a "legal" form of ninja looting. As Obnoxious highlighted, the role of GMs is precisely to address and prohibit individuals exploiting such loopholes.
As numerous individuals have emphasized, it is acceptable to impose loot bans on those who fail specific mechanics related to a particular boss, rather than extending the ban to the entire raid's loot. While this may not be explicitly stated, it aligns with the common understanding of what a "loot ban" entails for the average person.
The statement, "Loot distribution and Loot bans are based on Master Looter's discretion, and the Raid Leader has 100% power over the raid," is ambiguous. The reference to "discretion" introduces uncertainty, as it leaves room for individual interpretation. For instance, if a player chooses to ninja loot, should others accept it? The assumption is that discretion implies fair distribution, but it doesn't explicitly rule out undesirable practices. Furthermore, the statement doesn't clearly convey consequences, such as the extreme scenario where failing a boss mechanic throughout the instance results in losing all loot eligibility. A clearer and more specific set of rules is essential to avoid misunderstandings and ensure a fair and transparent loot distribution system within the raid group.
While you can argue endlessly that you meant x or y with your statements, it is obvious the GMs don't ban without cause. They look for intent. Your intent was probably very clear in the evidence that was submitted by the players. Disagree? Let's look at some screenshots that you were kind enough to post gloating about how your "rules" protect you.
This one from your discord that you're going to claim is a joke or is photoshopped:
https://imgur.com/a/0rQptS3
This one where the guy clearly mentioned that you never once told him that he was failing mechanics and proceeded to remove him before distributing any loot:
https://imgur.com/a/zy55QuA
This DK who was kicked from what I assume is the raid and your guild with no explanation. He also claimed to be top 5 dps, which you did not deny. You provided 0 reasons for kicking him. The shaman in the second screenshot in this was even worse. He implies that he rolled, won the roll and was denied the loot. When this obviously upset player tries to threaten you with exposure on Reddit, etc., you proceed to mock him:
https://imgur.com/a/GUjeZJ1
These two who seem to have been kicked from a VOA post-kill for "failing" mechanics. As someone who has led 25+ raids weekly for 5 years, you at least have a basic understanding of how Ferals and Rogues work:
https://imgur.com/a/8rKvVZZ
You thought your raid rules followed the TOS of the server and protected you. You were wrong. The GMs made it clear with the ban handed out and rejecting the following appeals. Instead, you ask your guildmates to put in mass tickets asking to unban you, ask them to reach out to the GMs over DMs (while asking them to edit and send a template post so it looks "original"), make forum posts like this, and even make a video defending yourself which you end with a call to action: asking for comments bashing the server.
You were wrong. Accept the ban, learn from your mistake, and move on. Or don't.