This reads as though you're saying a DM who disallows a PC race has issues.
Pretty much. Depends on the
why.
In the type of group I like to play with, the DM takes a more collaborative approach to world-building with the players. You aren't creating a setting for a novel, or even a setting to publish as a game accessory to others, but a setting to have fun with the players at your table. The more you say "no", the less collaborative and fun your game is. IMO, of course.
Most homebrew worlds I've encountered are pretty bog-standard fantasy worlds with world-building by restriction . . . which I hate. Other than "no tortles", what's different in your world that makes it worth keeping the restriction? I remember the old ads for Talislanta that advertised "No Elves" . . . it told me what wasn't in the setting, not what was unique and interesting about it. I never picked up any Talislanta books.
Now, if a DM is trying for a certain genre, tone, or truly has an interesting and unique world to invite his players into . . . I'm okay with restrictions that logically play into that. But when a DM tells me, "no dragonborn" and responds to my "Why?" with, "Because . . . . I don't like them . . . I can't be bothered to figure out how they fit . . . . dragonborn are stupid . . . ." I'm not likely to want to play in that game. Not because I don't get to play my precious "weird" race, but because I'm tired of playing with people who think good world-building is creating a list of things that don't belong.
And really, restricting "weird" races boils down to the real problem. The world isn't
yours, it's a shared world with your players. Or at least, that's the DM I'd like to play with, who doesn't have control issues over the game.