I believe that's just a error that occurs when Dino block destroying is turned off in the config files. You watch the blocks break, then after the chunk is regenerated, everything's back to normal. So no worries about the grief, but I do believe Dino morphs should be blacklisted to avoid any problems like this happening.
This only happens on client side as the mob griefing is turned off. That means if you reconnect the blocks will be there again. Thank you very much for reporting it and showing screenshots I much appreciate that.
