I think I'm close to understanding the issue.
PLEASE NOTE THIS IS ALL TRIAL AND ERROR AND I MIGHT BE COMPLETELY WRONG.
Here is what I can conclude upon 72 hours continuous testing by myself and a team of coders.
1. API Login + Local Hosted Bot (Local IP/Home IP)= SUCCESS
2. Web/App Direct Login + ANY PROXY (Any freaking proxy) = SUCCESS
3. API Login (Server hosted bot) + Proxy of ANY SORT (Any freaking proxy) = FAIL
I can conclude this pattern time and time again. I can fuck around with proxies when logging in via browser. As I said - able to login to same account on 3 proxies via browser without any issues. Able to login (API) via FL when using home IP.
A dozen people over Git Hub having no problem with self hosted local bots. Only when they go on server it raises the verification loop. Hence my conclusion.
The only way moving forward is to find a provider for stable clean Residential IPs that are static. Lets see. Going to give this a try. If this works then this might be the only way out.
I still feel this is some sort of bug. I pray it is.
Eitherways if the Russian panels have fixed it without a hiccup and are able to stay logged in to 500k+ accounts then this is not an anti-spam update to me.