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It doesn't. It has been an issue for months.
It is a completely different issue that others have posted about.
friends list offline.
And it appears to be a function of the "Only Friends" privacy setting
Yes, if people block you, you wont show up in their friends list,
but you can easily check if you're blocked by them by sending them a trade offer (it wont work, and say they have more details on their end)
If you set your profile to "Friends only" then your public steam level shows as 0 (Zero)
I set my profile back to public, however it took more than 5 hours for steam to return my profile level (didnt time how long it takes, but its not quick) and put me back on my friends list