The output of the show LACP interfaces shows the following:What is causing this issue?

On Aruba CX, LAG members must be link compatible (same speed/duplex and L2 characteristics). If one AP uplink (e0) negotiates SmartRate (e.g., 2.5/5 GbE) while the other (e1) negotiates 1 GbE, the switch detects the speed mismatch between the two member links and will not place both links in the distributing state. The second link is held in lacp-block to prevent forwarding on an incompatible member.

LACP active/passive (Option A) would affect whether a bundle forms at all, not cause lacp-block on just one member.

Routed-only interfaces (Option B) would prevent L2 aggregation entirely, not partially form with one member blocked.

Spanning tree/loop protect (Option C) do not produce an LACP member state of lacp-block.

Therefore, mixing a SmartRate port with a non-SmartRate port in the same LAG is the cause of the lacp-block state.