I had the same issue 2 days in a row, the first time I reloaded the game and after my penalty I didn’t have an issue. Next day I had the same issue. Now facing another penalty.
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Same problem happened to me–queued for comp, stuck on “Applying Update,” alt-f4’d, banned for 15 min. Obviously an incredibly unfair and rage-inducing bug to those who care about playing comp.
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Absolutely shameful they are letting this happen to us. It will go uncorrected on our profiles too.
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I’ve also gotten this error multiple times now. It needs to be fixed.
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Just now for me back to back, 8 hour ban.
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You are not alone in experiencing this bug. Here is a link to my post in case you’d like to read more about this issue: Comprehensive Thread Of All Top 500/Competitive Bugs. I put your thread under: Competitive Match Disconnection And Ban. Please help in spreading the word about this megathread and other related threads regarding these issues.
Happened to me yesterday, so I force quit the game and got hit with the 15 minute suspension. Happened again just now and now I’m hit with the 50 minute suspension. 
The ‘applying update’ screen only pops up when I queue for competitive games; played a bunch of unranked and custom games yesterday with no problems. I really want to appeal my leaver status as well.
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Bro it just happened to me again now, I am actually gonna rank soon
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Please fix, I dont want to be deranked.
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Same here, i won’t even risk trying again.
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Same and now I’m suspended for 7 hours… can someone fix this or do I have to wait
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same here. literally just happened to me
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Same this just happened to me five minutes ago when starting a comp match. I have a penalty now and have been grinding to get to masters rank. I will for sure be push down in the ranks cause of this error…
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It happened to me twice last night when queuing for unranked matches. Tonight, it happened to me on a ranked match. I don’t even wanna try playing ranked until they fix it.
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Same happened to me yesterday and today, I am suspended for 8 hours now. Is their a fix to this yet??
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Happened for 3 days now, still now fix, im not playing again until theres no ban risk for me
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+1. Not playing until Blizzar pronounces.
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same thing happened to me on multiple occasions, and i got my account suspended after the 6th time of leaving due to this unknown update???
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honestly might uninstall the game at this point theres to many bugs and the ranked system is broken also golds shouldn’t be matched with gms or diamonds.
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Good news, the Applying Update bug has been addressed by a community manager. Link here: [Main Thread] Applying Update - #148 by Joynueer.