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And, VAC does not ban instantly. VAC bans are delayed for good reasons.
The user you're referring to has a *A* VAC ban on their account but it is not necessarily from CSGO. With the exceptions of some source games, being banned in one game doesn't automatically make you banned in every other game on Steam.
Also, even if someone was VAC or gamebanned in CSGO, they would still be able to play in insecure, non-competitive servers although there are very few of those since people generally don't like to play with cheaters.