From your question, I gather you are wondering whether this is/was necessary in this case?
Without knowing the exact reasons for powering off all the output cards in your particular case, it would seem overkill, but the risk assessment may have deemed it necessary?
As pointed out, it's the output functions of the system that must be driven off in whatever manner the assessment deems necessary. Breaking the supply to many output cards, or one power supply unit, during a safety function, does save time and money.
But, it should be carefully considered at the safety function design stage. One important aspect to remember is if outputs are not driving their functions directly, but instead, through interposing relays. So again, as mention, you make sure you are breaking the function of the system through the safety function, in case of welded contacts, etc. on the interposing relays.
Does driving them all off prevent some dangers, but possibly introduce others? What is the safe state?
Usually, you would not need to break all output functions of a system, let alone the power to all the output cards, but it does depend on that risk assessment.
Usually, if the risk assessment does not require them all off, it's better practice to assign one or more output cards, specifically for the safety function and only break their output functions, or their supply, through the safety function.
So without knowing the specific requirements of your packaging systems risk assessment and safety function design, it may or may not have been overkill to have done this.
Your not sure how long this has been done on this particular system. It was most likely done at the design stage, but possibly, during a later re-assessment, a new hazard was identified that required this to be done, or it was done as a result of a near miss.
I'm not going to go into all the requirements for designing a safety system. Look for that risk assessment. It should tell you what was done and why.
Then, maybe, you can try and decide for yourself if it was indeed necessary?
G.