I am not a fan of this for the purpose of players avoiding each other, agreeing with the dispute-resolution issue; an equivalent to this was implemented at older games I was in, and unintentionally served as a way to allow players to shove others out of the game without running afoul of actual rules.

However, I do see the value in being able to avoid characters whose backgrounds have triggering content, and/or at least being able to say "plz avoid XYZ topic around me as we interact, mmm'kay?"

I doubt the former is a problem with the current community, but...