Don’t worry about that term “papers.” “Papers” is just what people in Europe call what we call “ID.” It is an emotionally loaded word here due to all the old movies with the gnatzies hissing “lit me zee yoh papehssss”.
Which means they still need to show their drivers license, proof of insurance, etc.
It sounds like this impacts what would go on at the station when they bring the person in. I’m not in law enforcement so I don’t know what the real world ramifications of this ruling would be regarding routine traffic stops.
Good news is that she didn’t strike it, she only temporarily blocked it.