When border rules change all exisiting passes are cancelled at the point in time the new rules come in, and people need to apply again under new criteria. This is why they always give a few days notice, so residents likely to be impacted can return under old permit rules.
So someone given a permit before the changes which well publicised came into effect needed to monitor the border rules given the situation is fluid (and if away from home you cant afford not to) and reapply.
This isnt unique to NSW. Qld works the same, all NSW residents in Qld border towns had to reapply for new passes to enter Qld when their rules changed last Saturday. The new permit only going live at 1 am. Qld residents from outside border bubble trying to drive home after 1 am, had to leave their cars and fly home.
To be unfair they would have had to apply for their permit after 12.01am last Friday, have had it approved and then revoked since then. Is this what happened ?
Any assumption that a pass issued under the soft border closure would still apply under the hard border closure is ignorance.