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It seems highly unlikely that he's going to be allowed entry at this point. Something or someone has put a red flag on his account and they're just slow rolling him now. Could be an error, could be a totally stupid reason, but the system isn't setup to allow oversight so we won't know. It's not likely he's going to see any relief from the current administration.
Does the due process protections of the US constitution apply to foreigners stuck in visa limbo like this?
No, it does not. The entire visa/entry process is not covered under any due process requirement.

If it was a entry under any kind of asylum it would be covered under a different process, but it's not. Any country basically has the right to deny any visa it wants.

Foreigners don't have rights to visit and/or work. It's a privilege. So no.
Anyone know the background here?
He has a bit here: https://daniel.haxx.se/blog/2018/07/28/administrative-purgat...

Obviously, we'll never hear the real reason, but as he says, he is the author of curl and maintainer of libcurl and his domain is haxx.se. Perhaps one of those is the reason

there might nog even be a 'real' reason. This happens a lot more than you may think. Visa waivers can be arbitrarily rejected (it's in the small print), if you encounter an official having a bad day, you may be out of luck.

If your visa waiver is rejected, you are suddenly illegally accessing the country (you get put in the next flight back by armed officers; if there is no flight back, you get to wait in a federal prison until there is).

Once back, you can never apply for a waiver again, so it's up to getting a real visa. The process is not made for that at all, since they except anyone from the waiver countries to just get a waiver. That results in long processes, many, many forms, long interviews, and an arbitrary time period, after which you may or may not get the visa (again, seemingly up to the arbitration of someone needing to not have a bad day).

Get an official name change, then reapply.

Turns out that usually bypasses most of these red flags, although it is expensive and a pain.

He already paid 160 dollar. Now he has to change his name? Just to go to a conference?

This is insane.

You have to list previous names on your visa application. Not sure where you got that info, but it's incorrect.
Yes, but they'll rarely blacklist based on previous names.
It was always like this in central/eastern europe. Best way to get US Visa was knowing someone who knew US consul personally, or worked with consulate. Otherwise stand in xxx meter queue, pay your xxx$ fee and wait couple of weeks/months for rejection.
I wish the US would just go away already. Went to Silicon Valley recently and it is just easily offended transsexuals, lesbians, Indian people and chinese there. Absolutely no chance that those spoiled brats in that place will produce anything noteworthy during the next 10 years.
Well this seems like a well-reasoned comment and not flame bait at all.
Actually the US is already going away. More and more international conferences that used te be held in the US start to choose another location.

The reason is simple: We are not welcome anymore. This is one small example. The continuing abuse by the TSA is another big factor. The rampant police and governemental abuse (or that's how it looks from the outside at least) is another factor. Why would I risk ending up in some legal limbo by going to the USA?

The US is going to start losing a huge amount of technology talent to developed countries with more rational visa policies.