@shekinahcancook That's correct. However, in their instance, they don't want any mention of “Pixelfed”, so there's that. It is no different from all other non-Threads servers/instances where they “fediblock” certain keywords (and accounts) without checking the context.
It still comes down to, “their instance/server, their rules”. As long as they federate, that's good. Any filters or “fediblock” they add for their instance, that's their rules. Just like any other fediverse instance are doing already before Threads came.
Don't get me wrong, I am not defending Threads or Meta. ^_^