I haven't spent a lot of time in the US where face control was much of an issue, but when I lived in Moscow, it was just a fact of life everywhere we went all the time. Restaurants, bars, clubs, stores, hotels. If you didn't cut it, you didn't get in, period. That applied to clothing, grooming or simply how subjectively hot you were in the eyes of the bouncer (or, in our case, how American we looked=money in the bank).
People get cut out all the time for all kinds of fairly stupid reasons if you step back and look at it, but image is too important for businesses. They spend lots of time and pay lots of money to create and maintain their image and if they decide, for whatever reason, that you don't mesh with the image, they're wasting that time and money by keeping you around.
It was strange for me when I first ran into it, as I imagine it felt weird for you when they rejected you, but it's definitely out there and it's not as rare as you'd think, it just sometimes hangs out in places and ways that you don't expect.
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