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Update: Figured it out. Cash App won't pay LN Invoices < $1 when paying with USD balance: #1502321
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So all larger ln payments now work?
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Yes, i can now pay any larger amount and for smaller (sub-$1), as long as I use BTC as the funding source those work also.
It was just confusing because I was assuming the fail.was due to walt being KYC free but that was just a coincidence. It failed because I was trying to test and only tried to send a tiny amount, and only from USD wallet in my Cash App.
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More likely, white list of acceptable nodes. Kraken also started charging 0.3% for LN BTC deposits, where was 0% fee before. War on privacy.
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With Blink.sv wallet, Cash App now isn't even giving me the chance to confirm that I want to pay the LN invoice. I simply Paste and then it goes straight to the Sorry, your withdrawal could not be processed. At least that is that way when paying from my USD wallet. Paying in sats (i.e., from BTC balance), it at least gets past the Confirm (enter PIN) part.
This certainly seems like some type of blacklist. Either Blink, or ... maybe me?