Has anyone made a 7 or 14 band spectrum analyser with Arduino using WS2812B LEDS as shown in the picture?

I have not built one but with 7-bands it's probably made with an MSGEQ7 chip. With the MSGEQ7 your Arduino is freed-up to focus on controlling the LEDs.
That's helpful because Addressable LEDs are software intensive and software frequency analysis (FFT or FHT) is also software intensive.