Blackout for location and custom controls

Currently the blackout button is still allowing values to be sent to the location and custom controls channels of a group. Can it either apply a 0 to all channels or allow for it to be edited to set the blackout values for each channel and stop all sequences and presets?

Yes it is normal, the blackout mode will only close shutters and put dimmers to zero intensity. This will not reset others settings. You can create a custom blackout on your dashboard by creating a preset with all this values forced to 0.