Revenue inspectors' devices are generally updated with the latest list of blocked devices/cards overnight or at the start of their shift.
This sort of incident has happened before (ISTR
@MikeWh has encountered such a case before). It can happen if a card was blocked a long time ago, and is thus not on the barrier/validator's list of recently used blocked cards. The barrier/validator accepts the card for touch in, as it's not in the list of recently used blocked cards. But it won't be accepted if there is a revenue inspection en-route, as inspectors' devices carry the full list of blocked cards. And it likely won't be accepted to touch out, as the backend system will include the card in an updated list of recently used blocked cards, which may well be sent to barriers/validators before the journey is completed.