As far as I know, the domain purgatory is only when it's close to it's expiry date. The reason you need to disable the domain proxy is because they replace you

As far as I know, the domain purgatory is only when it's close to it's expiry date. The reason you need to disable the domain proxy is because they replace your admin contact email address with one of theirs (they also replace your phone number and address with theirs). In order to receive the transfer request to your Administrative Contact email address, you need to turn off this proxy.