I literally have BC.Game's own chat transcripts from June 19 discussing the loss limit failure with their support agents, and them coming back to me with varying excuses. I have screenshots timestamped June 19 evidencing my loss limits were set. Despite this, BC.Game has stood firm with the lie that I didn't set any loss limits until June 26, 1 week after I filed a complaint with Casino Guru. To defend a complaint with claims that don't even make sense, shows a high level of bad faith.
It's a common thing for casinos to provide useless tools like the one in your case and avoid responsibility whenever they misfire/malfunction. Another similar case like yours in another popular site(Rollbit) popped up recently for example.
This is why it's always best to never rely on a site's tools and only rely on ourselves smartly in order to avoid adding more layers of risk to this already risky gambling environment.
feels like a clear attempt to dodge responsibility. Sadly, this isn't rare. As @Haunebu mentioned, even other sites have had similar issues with tools that should protect players but end up failing. It's common casinos often put all the blame back on the user. It's unfair, and in this case take necessary caution before proceeding.
I don't know how common it is in crypto casinos because I haven't tried it there, but I did try it in fiat casinos and it worked. Also, I don't see people complaining about it in forums, unlike what I see in this forum, where several people complain that the responsible gambling measures available in crypto casinos some times don't work (at least allegedly).
If it happens more in crypto casinos, I suppose it's because they don't have such strict regulations. In a regulated fiat casino, if the user imposes a deposit limit or self-excludes, this is recorded in the software, and if someone from the casino manipulates it, that is also recorded. They usually send you an email as well. In other words, you self-exclude for 24 hours and you receive an email confirming this. If there is a change to this, you should receive another email, and this is evidence that could be used in proceedings in which casinos face substantial fines if they commit wrongdoing.