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Wallet funds are supposed to be only used on the account they are on, thats why you also cant transfer them to another account.
Using wallet funds to gift games seems to Valve like you are trying to circumvent that restriction so if you try to gift more then like 1 game a year that way it will flag your account with this restriction.
Valve has really started to crack down on this for about a year or so.
You can still use wallet funds to buy games for your own account, just not for others.
For that use a external payment method, that will work.
1. Buy gifts with a non wallet payment method.
2. Don't buy gifts.
Did you get the restriction lifted, or should I just give up?