I've never heard that bitcoin can be frozen, because bitcoin is different from the stablecoin which can be frozen from a smart contract.
Yeah bitcoin can be frozen in centralized exchange.
Better to say stolen from you by centralized exchanges if you trade there.

UTXOs can't be really frozen. Some wallets do have the option to "froze" them, but it just mean those UTXOs will not be included into transactions until you unfroze them. This is in fact very useful feature which comes in handy when your wallet has been under the "dust" attack.