According to Malwarebytes (they got banned too), server-side or client-side does not matter:
https://twitter.com/thomasareed/status/1021095129279541249
I realize the line is fuzzy here between "using a VPN to do ad-blocking" and "adding an optional ad-blocking feature to a VPN", but they are different concepts. Verizon's VPN appears to be a real VPN that simply has an optional ad-blocking feature. Perhaps the optional nature of the ad-blocking is important? I don't know.