It's a joke, I know that the very existence of a bluescreen literally means that the processor has not hung but it has been detected that proceeding to run userspace code might result in undefined behavior. The hard drive remains in use but this relies on a subsequent successful Windows boot (good luck). In case of bootlooping kiosks, the company's IT crew will probably just pull useful data off the drive and revert it to the known good installation.

If the BSOD happens on a running PC, networking will probably continue working. With a bootloop, it depends on whether the network stack initialization has progressed far enough before the crash.