No, this is not wrong. I will demonstrate. Here is a sample conversation between three users A, B, and C:
https://i.ibb.co/CJkZWBG/image.png
No-one has blocked anyone at this point, so the conversation is visible to all parties and any onlookers.
Your own app shows the same:
https://i.ibb.co/3kxp5Q9/image.png
Now for whatever reason, user B decides to block user A. The entire subthread starting with user B's response to user A is removed, which includes making the discussion between user A and user C no longer viewable in that thread, to anyone:
https://i.ibb.co/j6f9z92/image.png
This appears exactly the same in your app:
https://i.ibb.co/2Px9bw5/image.png
The root cause is that the app.bsky.feed.getPostThread endpoint omits the entire tree of replies for that subthread in its response:
https://i.ibb.co/F45n6QV/image.png
Please feel free to verify this in your own browser and explain why you believe this to be incorrect.
https://i.ibb.co/CJkZWBG/image.png
No-one has blocked anyone at this point, so the conversation is visible to all parties and any onlookers.
Your own app shows the same:
https://i.ibb.co/3kxp5Q9/image.png
Now for whatever reason, user B decides to block user A. The entire subthread starting with user B's response to user A is removed, which includes making the discussion between user A and user C no longer viewable in that thread, to anyone:
https://i.ibb.co/j6f9z92/image.png
This appears exactly the same in your app:
https://i.ibb.co/2Px9bw5/image.png
The root cause is that the app.bsky.feed.getPostThread endpoint omits the entire tree of replies for that subthread in its response:
https://i.ibb.co/F45n6QV/image.png
Please feel free to verify this in your own browser and explain why you believe this to be incorrect.