I'm having trouble reproducing this, but maybe I'm not fully understanding what you're running into?

The expectation is that the project becomes a normal reviewer but with status "reject", and that this prevents the revision from becoming "Accepted" until someone accepts on behalf of the reviewer. That is, "Rejected" is a stronger status than "Blocking", so nothing is lost by replacing "Blocking" with "Rejected".

Here's what I did:

First, I added a user (@dog) and a project (Dog Project II) as blocking reviewers:

Then, I requested changes to the revision as @dog. The project reviewer has moved to the "rejected"/"changes requested" state:

Next, I accepted the revision as @ducksey:

Note that the revision is still in the "Needs Revision" state, and that the project reviewer is still in the "rejected"/"changes requested" state.

I also tried this:

• Add an "intern" (@ducksey) and a blocking project reviewer (Dog Project II).
• Accept as @ducksey.
• Request changes as @dog, who has authority over the project.

This produced a similar state:

But because the intern is still listed as an accepting reviewer

This isn't how the rules are supposed to work: if any reviewer is in the "rejected" state, the revision should never transition to "Accepted". In my test cases above, this appears to work correctly.

Can you give me a more specific series of steps which allows me to reproduce a problematic state?

I've repeated this again, taking some screen dumps. This time I did it on a Phacility hosted instance, instead of on our self-hosted instance.

First, I've created a new revision with a blocking group reviewer "Test Project" and a normal reviewer "dennis", which is a member of the project.

On the "Edit Revision" page it looks like this:

I didn't actually edit anything, but it shows the test project clearly as blocking.

Next, I've requested changes as the reviewer "dennis". Of course, this marks the group as Requested Changes as well:

But, going to the Edit Revision page again, now shows the Group Reviewer is no longer a blocking reviewer. See this dump:

Version info of the Phacility instance:
phabricator 061375fde6525ea3e6eb701ddc570c5a422d7ffc (Wed, Apr 5) (branched from 163e1ec4426eb40e15ad46f831a731f13b275918 on origin)
arcanist 60aaee0ed3f5a1e4384ac7d7f2efd2c64cecbe44 (Sat, Mar 25) (branched from d1db9a72b552151613a918e3d49fa72433387a68 on origin)
phutil f568eb7b9542259cd3c0dcb3405cc9a83c90a2f5 (Mon, Apr 3) (branched from c581e769f10c6d2b427900897edba74e01a572bd on origin)
libcore 3eebdfca5b325792fdd2003a261e1ab94b919322 (Fri, Mar 24)
services 198eb67bd82296b6938d038836c7269c84bad98f (Feb 13 2017) (branched from 772620edd80ce593b104dba7721db42b9eb020a2 on origin)