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.

There are audio recording from this incident where you can hear the "train orders" being given and acknowledged.

They were the wrong orders apparently.