Kbin doesn't actually have a feature for blocking instances. What you blocked is the lemmy.world domain, which means posts that count as links to lemmy.world will be blocked. That behavior is also fairly inconsistent.
this post was submitted on 18 Aug 2023
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Oh, fun! I tried blocking an instance and random stuff got blocked instead. Couldn't see any comments under many posts, including my own comments under at least one post that also wasn't on the blocked instance. :-\ Dunno why nor what to do about it. I just unblocked and resumed considering switching to an instance that's defederated with them.