Discussing the plan for more than a year, X is finally taking steps to water down the blocked account functionality by removing the block button from many places in the app.
As app researcher Nima Owji notes, X is ending the feature of blocking at post levels. Apparently, users will still be able to block a person from seeing their profile, but even when an account is blocked, you'll still see their posts.
That way, the only reason to not have someone see your updates is for you to post privately or to followers alone. Such a thing would keep it from their view.
And here, the logic is that, actually, whether or not you have blocked someone you can get into public posts anyway by going on via another account, or via an incognito window; hence, no value is added by blocking in that regard.
But there is. Being able to block somebody means that they don't automatically see your updates in their feed, which can be a powerful deterrent for problem users. Harassed and abused users particularly value this option because blocked users can still swap view someone's public updates, but since they're not readily available, it becomes a limiting factor in many cases.

That's why the App Store and Google Play Store require an option for blocking, and it does appear as though X's efforts to weaken and reduce the options for blocking may be against those parameters.

But owner of X Elon Musk thinks blocking is a bad feature, primarily because of block lists, he says limit who's able to see his posts, and other profiles in the app.
I'm not clear on how block lists would "create a DDoS vector," but basically, Elon has been trying to eliminate blocking as a function because he thinks it's limiting the reach of people's posts whom he believes ought to be seen.

That appears to be the driving rationale for this plan, and how this will actually play out in real life is far from clear. But Elon has announced that blocking will still exist: it will just be harder to find.

This sounds problematic, and perhaps a source of larger problems than it is trying to solve. However, again, Elon feels his reach is being restricted by block lists, and this is the only way that he can negate them. So he's pushing forward, it seems in a somewhat cautious manner, so that he meets app store requirements.