After reviewing some user's first answers, occasionally I'll come across that flat-out insult or slur that I know they'll most likely have their account deactivated. After that user is banned, they'll have that greyed-out avatar:
Do I get reputation back from any of their posts that I downvoted?
Related to this is "Do I get my reputation refunded if a bad answer gets deleted?" - it covers deleting answers, but not deactivated users.
That grey avatar does not mean the user is banned, it means the user was deleted or destroyed. The state of the user is irrelevant for your reputation, the state of the posts you downvoted is important.
You get your reputation for downvotes back when those posts are deleted. If a user has only posted offensive or abusive content, they are usually destroyed, which removes the user as well as all of their posts.
If for some reason some offensive or abusive posts remain, just flag them to get them removed, this will also get your reputation back.
Yes, you do.
You'll see an entry that reads user was removed and your reputation restored.
In that example, I lost reputation because I had an upvote from that user, but in your case you'd see a +1
