Sorry, but ordering trains to drive manually after the system locks itself down, is the proper procedure. Of course you are still supposed to only send trains to free sections, but the error is in that step, not that they ordered a train to drive on it's own.
Also the fallback procedure is also aided by automatic systems and a sizable number of accidents in the past were caused by that information being faulty.
Why is that?
I remember a long time ago I was stuck in a train in a field a considerable time because of a similar failure and conductor just wouldn't move unless green
I was expecting the same here, conductor is the first to die so just refuse until the idiots fix their system
It is the proper procedure, and it does come (in a lot of countries, AFAIK) with a lot of guardrails:
There will be a so-called "train order" allowing passage of a specific section ignoring the safety system warnings, which has strict validity limits both in time and in the area where it applies, usually denoted by specific hectometric mileposts
When cab signaling is involved (LZB is one of these) and it malfunctions, the entire system normally changes to "driving on sight only" - which indeed limits the train to 40, 30, 20, sometimes - 15 km/h (see https://fr.wikipedia.org/wiki/Marche_%C3%A0_vue) or the line gets switched to lineside signaling - if it is available.
I don't know how you could violate all of those rules - both from the driver's side and from the traffic control side - but it sounds absolutely horrible. Like an override of at least 2 (if not 3) very explicit safety margins.