Automated Guided Vehicle (AGV) fleets in production and logistics environments rely on a system-wide emergency stop to handle local anomalies such as malfunctions, hazards, or contaminated areas. While safe, this approach halts the entire fleet even when only a small area is affected, causing unnecessary downtime. This paper proposes dead zones --- a formally defined localized isolation approach that serves as an additional fail-operational mechanism for situations where a full system-wide halt is not strictly needed. Rather than shutting down the entire fleet, a dead zone isolates the anomalous area, allowing unaffected robots to continue operating normally. We introduce two operational strategies: basic dead zone handling, in which affected robots enter a dead zone and stop, and dead zone handling with escaping, in which robots that are sufficiently far from a dead zone reroute around it. For escaping on counterclockwise trajectories we prove collision-freedom with a bounded arrival delay for all escaping robots, provided a minimum pairwise separation is kept between robots. Experimental evaluation confirms the theoretical guarantees and characterizes the throughput tradeoffs between all three approaches: full emergency stop, basic dead zone handling, and dead zone handling with escaping.

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