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Microsoft Ads does not offer automatic IP blocking via any automation like API. Instead, IPs need to be blocked manually via your Microsoft Ads account. 

To block specific IP addresses from seeing your ads:

Download Microsoft Analytics Report:

1. Navigate to Fraud Analytics > Microsoft Ads

2. Set Date to desired range, click Download Excel of Current Range

Manually blocking IPs in Microsoft:

1. On the navigation menu on the left, select Campaigns.

2. Select the checkbox next the campaigns where you want to add the exclusion.

3. Click on Edit, and then click on Other changes.

4. In the Campaign settings list, select IP address exclusions.

5. Enter the IP addresses that you want to be blocked from seeing your ads. Make sure to enter one IP address per line. You can also add a range of addresses using a wildcard character (*).

After you are done making the desired changes, click Apply.

Note:

• All Microsoft Advertising IP exclusions must be added at the campaign level, not the ad group level.

• You can exclude a maximum of 100 IP addresses (or IP address ranges) per campaign.

• You can only exclude IPv4 addresses.

More details in Microsoft's help center