Holly tested this on Honeysuckle BUGFEST at https://bugfest-honeysuckle.folio.ebsco.com/.
Take a look at the patron with barcode 111111111111. She has 9 open loans, with two 'Declared lost' and two 'Aged to lost', which means she has 4 lost items. When I set the Patron Block Limit for her patron group to 3, the block does not show up. When I lower it to 1, the block does shows up. This means that only two of her 4 lost items are being counted. All 4 should be counted. This needs to be fixed before Chicago goes live, so it needs to be in the Iris Release.
No one with Honeysuckle implemented has complained about this, so I don't believe we need to do a hotfix to Honeysuckle.