Yes B can either drop out or they can silence the server but remain federated, up to them.
There is no penalty for joining and leaving though, so worst case scenario you are back where you started, no harm done.
Keep in mind the UFoI is not meant to include the whole fediverse. We picked rules that would allow the vast majority of instances join, those that want to be part of a larger community. Other instances are welcome not to join, there is no "penalty" for not joining.
Long story short, no harm in joining up until you want to defederate, then just leave if it ever comes to that.
@freemo @louis Sure. So let's say server A runs at a minimum rules level, server B adds more rules, server B sees posts from server A which would be block-worthy under B's rules, but "you are guaranteed to be federated with the whole of the UFoI."… so B has to drop out.
I mean, it may work in practice, and I'm not saying "never touch it", but nor would I be in haste to jump in for my own (notional) instance.